Cost Centres Are Not Classified as Responsibility Centres Since There

question 103

True/False

Cost centres are not classified as responsibility centres since there is no revenue responsibility.

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Definitions:

Debts

Money owed by an entity to another party, required to be paid back, typically with interest.

Liabilities

Financial obligations or debts that a business owes to others, which must be settled over time through the transfer of economic benefits.

Dividends

Portions of a company's earnings that are distributed to shareholders, typically in the form of cash or additional shares.

Insurance Expense

An accounting term that refers to the cost associated with purchasing insurance policies to protect against various risks.