Which Statement Is True Concerning a Cost Centre

question 97

Multiple Choice

Which statement is true concerning a cost centre?

• A)It incurs costs and generates revenues.
• B)It only exists in companies in which costs exceed revenues.
• C)It is evaluated most effectively using ROI.
• D)It is usually a production or service department.

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Definitions:

Long-Run Phillips Curve

A graphical representation suggesting that in the long term, there is no trade-off between inflation and unemployment, showing vertical at the natural rate of unemployment.

Unemployment Rate

The percentage of those in the labor force who are not working but are in search of employment.

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, not zero unemployment.

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.