A Cost Center

question 55

Multiple Choice

A cost center

• A)is responsible for generating profit.
• B)should be evaluated using return on investment to best motivate managers.
• C)places its managers responsible for all costs under their control.
• D)requires a set of performance measures that are more complex than those for an investment center.

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Definitions:

Subclavian

Pertaining to the area below the clavicle, often referring to the subclavian artery or vein which supply blood to and from the arm.

Axillary

Relating to the axilla; the space below the shoulder joint, bounded by the pectoralis major anteriorly, the latissimus dorsi posteriorly, the serratus anterior medially, and the humerus laterally.

Brachial

Relating to the arm.

Cephalic

Referring to the head or the head end of the body.