An Organizational Unit of a Business That Incurs Costs and Generates

question 11

Multiple Choice

An organizational unit of a business that incurs costs and generates revenues is known as a(n) :

• A) Cost center.
• B) Sales center.
• C) Profit center.
• D) Investment center.

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Definitions:

Economic Term

A concept or terminology used within the field of economics to describe processes, theories, or phenomena related to how goods and services are produced, distributed, and consumed.

Opportunity Cost

Giving up potential improvements from various alternatives by choosing one option.

Scarcity

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of allocation decisions.

Production

The process of combining various inputs to make goods or services for consumption.