A Segment of Mega Inc

question 107

Multiple Choice

A segment of Mega Inc., manufactures and sells blankets.The various models of blankets are produced in a single factory using stable technology.They are sold by the sales department, also located in the factory.The segment is most probably accounted for as a(n)

• A) cost center.
• B) revenue center.
• C) profit center.
• D) investment center.
• E) None of these.

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Definitions:

Inventory Turnover

A metric that measures how often a company sells and replaces its stock of goods over a certain period, indicating the efficiency of inventory management.