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:

Drivers' Average Speed

Refers to the mean speed at which drivers operate their vehicles over a certain stretch of road or within a specific area.

Number of Accidents

A count of unintended or unexpected events resulting in damage or injury within a specified period or context.

Regression Equation

A mathematical formula that describes the relationship between one dependent variable and one or more independent variables.

Predict

The act of using data, statistical models, or patterns to make forecasts or estimates about future events or outcomes.