Which Type of Responsibility Center Would Usually Be Found at the Highest

question 98

Multiple Choice

Which type of responsibility center would usually be found at the highest level in an organization?

• A) Revenue center
• B) Investment center
• C) Profit center
• D) Cost center

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Definitions:

Service Contract

An agreement between a customer and a service provider detailing the terms of service delivery, including scope, quality, and responsibilities.

Adjusting Journal Entry

A financial transaction recorded at the closure of an accounting cycle to properly assign earnings and expenses to the corresponding period.

Performed

Carried out or executed a task or function.

Prepaid

Refers to expenses that have been paid in advance of their due date and are recorded as assets until they are actually incurred.