Which of the Following Best Describes Intermediate Cost Centers

question 111

Multiple Choice

Which of the following best describes intermediate cost centers?

• A) Any cost center whose costs are not allocated to another cost center.
• B) Service departments cannot be intermediate cost centers.
• C) User departments cannot be intermediate cost centers.
• D) Any cost center whose costs are charged to other departments in an organization.

---

Definitions:

Quotas

are set limits or targets that need to be achieved within a specified timeframe, commonly used in sales, production, and policy implementation.

Political Risk Analysis

The process of assessing and evaluating the potential risks involved in a business's operations due to political decisions, conditions, or events.

Political Disruptions

are events or actions that cause significant changes or interruptions to the usual political activities and processes, potentially leading to instability.

Common Currency

A currency that is used by multiple countries, facilitating international trade and economic stability, like the Euro in the European Union.