Packrall Company Makes Computer Chips

question 119

Multiple Choice

Packrall Company makes computer chips.Curtis is manager of the company's maintenance department.Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment,Curtis has been authorized to contract to perform maintenance for outside customers.In this company,the maintenance department is likely organized as:

• A) A profit center.
• B) A revenue center.
• C) A cost center.
• D) An investment center.

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Definitions:

Cost Principle

An accounting principle that states assets should be recorded at their cost at the time of purchase, not their current value.