Examlex
Which of the following statements is TRUE?
Cost Centers
Parts of an organization to which costs can be allocated, but which do not directly generate revenues.
Operating Expenses
Costs incurred during the normal functioning of a business, excluding the cost of goods sold.
Support Departments
Units within an organization that provide essential services to other departments or divisions but do not directly produce revenue.
Profit Center
A decentralized unit in which the manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits).
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