What Is the System by Which Businesses Are Controlled and Directed

question 20

Multiple Choice

What is the system by which businesses are controlled and directed?

• A)auditing.
• B)general management.
• C)corporate governance.
• D)business directing.

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Definitions:

Service Center

A department or facility providing support services to other units within an organization, often not directly generating profit.

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.