A Unit or Department That Incurs Costs but Does Not

question 37

Multiple Choice

A unit or department that incurs costs but does not generate revenues is known as a:

• A)cost center
• B)profit center
• C)revenue center
• D)None of these answers is correct.

---

Definitions:

Stock Splits

A corporate action that divides the company's existing shares into multiple shares to boost the liquidity of the shares, though the overall market cap remains the same.

Stock Dividends

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.

Common Shares Issued

Refers to the number of shares that have been allocated to shareholders as part of a company's capital stock.

Market Price

The current price at which a particular security, commodity, or asset can be bought or sold on the market.