Responsibility Accounting Performance Reports Are Prepared by Which Types of Business

question 38

Multiple Choice

Responsibility accounting performance reports are prepared by which types of business units?

• A) Cost centers only
• B) Investment centers and revenue centers only
• C) Cost centers, revenue centers, and profit centers
• D) Investment centers only

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Definitions:

Rationing Mechanism

A system designed to allocate goods or services among interested users, often used when demand exceeds supply.

Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Rent Control

Government policies that limit the amount landlords can charge for renting out their property.

Quality

The standard of something measured against other similar entities; it denotes how good or bad an object, product, or service is.