From a Strategic Standpoint, Profit Centers Tend To

question 38

Multiple Choice

From a strategic standpoint, profit centers tend to:

• A) Free the center manager from concerns about markets.
• B) Place more cost emphasis on rush orders.
• C) Provide incentive for coordination among managers of different functional units.
• D) Focus managers on cost control rather than revenue generation.
• E) All of these answer choices are correct.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used, but not yet paid for.

Sales to Customers

The transactions where goods or services are sold and delivered to the buyer, generating revenue for the company.

Accounts Payable

The amounts owed by a company to its suppliers or creditors for goods or services received but not yet paid for.