A Subunit That Has Responsibility for Controlling Costs, but Does

question 6

Multiple Choice

A subunit that has responsibility for controlling costs, but does not have responsibility for generating revenue is a(n)

• A)investment center.
• B)cost center.
• C)profit center.
• D)value added center.

---

Definitions:

General Journal

A primary accounting record used to record all non-specific financial transactions of a business in chronological order.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services, collected by the retailer at the point of sale.

Full Payment

Completion of payment for a product or service in total, settling all owed amounts without remaining balances.

General Journal

A fundamental accounting ledger where all financial transactions are initially recorded, employing a double-entry system.