A Responsibility Center Is a Part, Segment, or Subunit of an Organization

question 177

True/False

A responsibility center is a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities.

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Definitions:

Straight-line Method

An approach to calculate depreciation or amortization by equally dividing the asset's expense over its useful life.

Issue Bonds

The act of a corporation or government borrowing money from investors by selling them bond securities.

Sold For

Refers to the final price at which a product, asset, or service is sold to a buyer in a transaction.

Bond Premium

The additional amount over the face value that investors are willing to pay for a bond, typically because it offers a higher interest rate than the prevailing market rate.