A Unit or Department That Incurs Costs but Does Not

question 80

Multiple Choice

A unit or department that incurs costs but does not generate revenues is known as a:

• A) cost center.
• B) profit center.
• C) revenue center.
• D) division center.

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Definitions:

Price

The financial expectation, obligation, or contribution made in payment for something.

Total Cost Curve

A graphical representation of the total cost, showing how total cost depends on the quantity of output.

Marginal Cost

The rise in sum total expense from the production of one extra unit of a product or service.

Market Price

The current price at which a good or service can be bought or sold in a marketplace.