If a Segment of Business Is Considered a Profit Center

question 12

Multiple Choice

If a segment of business is considered a profit center:

• A)it must sell products or services to customers outside the business.
• B)only revenue is accumulated for the segment.
• C)no indirect expenses can be allocated to the segment.
• D)both revenue and cost data must be accumulated for the segment.

---

Definitions:

Secondary Data

Information that has been previously collected and is available for use by others, not originally gathered for the current research need.

Primary Data

Data collected directly through original research, such as surveys or experiments, providing firsthand information specific to the researcher's study.

Cheaper

Less expensive; costing less than other items or alternatives.

Formal Report

An official document prepared to analyze a situation or problem, often leading to recommendations or plans of action.