Which Responsibility Center Managers Are Responsible for Both Generating Revenue

question 14

Multiple Choice

Which responsibility center managers are responsible for both generating revenue and either controlling costs or efficiently managing invested capital?

• A) cost and profit centers
• B) revenue and profit centers
• C) profit and investment centers
• D) revenue and investment centers

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Definitions:

Unit Selling Price

The amount of money charged to the customer for a single unit of a product or service.

Variable Cost Concept

Costs that vary directly with the level of production output, such as raw materials and labor involved in production.

Selling Price

The price at which a product or service is offered to consumers, determined by factors such as cost, market demand, and competition.

Markup Percentage

The percentage added to the cost price of goods to cover overhead and profit, determining the selling price.