Profit Centers Can Occur Based on Function,product,process,customer,or Geographical Areas

question 16

True/False

Profit centers can occur based on function,product,process,customer,or geographical areas.

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Definitions:

Operating Income

A measure of a company's profitability from its core business functions, excluding non-operating income and expenses.

Support Department Allocations

This is the process of distributing the costs of support departments to producing or operational departments within an organization.

Operating Expenses

Expenses incurred during routine business operations, including rent, utilities, salaries, and advertising, but excluding costs of goods sold.

Cost Center Manager

An individual responsible for overseeing the expenses and budget of a specific department or segment within a company, ensuring efficient cost management.