A Responsibility Center Which Measures Performance in Terms of the Difference

question 79

Multiple Choice

A responsibility center which measures performance in terms of the difference between revenues (which measure production) and expenditures (which measure resources) is a(n)

• A) investment center.
• B) revenue center.
• C) expense center.
• D) profit center.
• E) standard cost center.

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Definitions:

Basic Research

Research conducted to increase fundamental knowledge and understanding, often without immediate commercial objectives.

Commercial Introduction

The process or act of launching a new product or service into the market.

Innovation

The process of creating, implementing, and adopting new ideas, processes, products, or services, which can drive economic growth, improve efficiency, and provide competitive advantages.

Innovation

The introduction of new ideas, goods, services, or practices that aim to improve processes, increase efficiency, or solve problems.