INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 57

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A budget will have value only if it is actually used and [records are kept of actual income/expenses | spending never deviates from the budgeted amount].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), reflecting a company's profit from its core business operations.

Divisional Assets

Resources and property allocated to a specific division within a larger organization, instrumental in generating revenue.

Responsibility Center

A business segment or department within an organization whose manager is accountable for specific financial and operational outcomes.

Investment Center

A business segment within a company for which the manager is responsible for generating revenue and controlling costs, with the ability to make significant investment decisions.