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:

Sales Increase

An upward change in the quantity or value of goods and services sold by a company, indicating growth in revenue.

Units Budgeted

The estimated quantity of units of production or sales that a company plans to achieve during a specific period.

Direct Cost

Expenses that can be directly tied to the production of specific goods or services, such as raw materials and labor.

Cost Object

An item for which costs are measured and assigned, which can include products, services, projects, or customers.