The Manager of a Profit Center Has the Responsibility for Making

question 20

Multiple Choice

The manager of a profit center has the responsibility for making decisions that affect the center's _____.

• A) costs, revenues, and investment in fixed assets.
• B) investment in fixed assets, but not costs.
• C) costs and revenues, but not investment in fixed assets.
• D) revenues and investment in fixed assets, but not costs.

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Definitions:

Face Value

The nominal or original value of a security or financial instrument as stated by its issuer, often the amount to be repaid at maturity.

Realizable Value

The estimated amount that an entity can receive from the disposal of an asset, after deducting the costs associated with the disposal.

Maturity Value

Maturity value is the amount to be received by an investor at the maturity date of a financial instrument, often including principal and interest.

Allowance Method

A bookkeeping approach involving the estimation of non-recoverable debts by anticipating uncollectible accounts at the close of every period.