Which Responsibility Centers Generate Both Revenues and Costs

question 47

Multiple Choice

Which responsibility centers generate both revenues and costs?

• A) Investment and profit centers
• B) Profit and cost centers
• C) Cost and investment centers
• D) Only profit centers

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Definitions:

Purchasing Power

The real value of money in terms of the quantity of goods or services that one unit of money can buy.

Disinvestment

The process of selling off a portion of assets or withdrawal of investment capital from stocks, bonds, or businesses, often indicating a strategic or economic decision.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises, including education, healthcare, and law enforcement.

Hyperinflation

An extremely high and typically accelerating inflation rate, often resulting in rapidly eroding currency values and creating economic instability.