Cost Centers for Which There Is a Clear Relation Between

question 44

True/False

Cost centers for which there is a clear relation between inputs and outputs are termed discretionary cost centers.

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Definitions:

Adequacy

The sufficiency or appropriateness of something to fulfill a specific need, requirement, or condition.

Fraudulent

Involving deception, typically for personal gain or to damage another individual, often considered a white-collar crime.

Preemptive Rights

Rights that give existing shareholders the option to buy additional shares before the company offers them to the public, to maintain their proportionate ownership.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.