The Responsibility Report of Keith Paul, a Manager of One

question 24

Multiple Choice

The responsibility report of Keith Paul, a manager of one of the divisions of a manufacturing company, includes profits as well as return on investment and residual income. Keith is most likely to the manager of a(n) :

• A)investment center.
• B)profit center.
• C)cost center.
• D)revenue center.

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Definitions:

Dependent Variable

The variable in an experiment or model that is expected to change in response to changes in independent variables.

Relative Change

Relative Change represents the ratio of the change in a quantity to the original amount, often expressed as a percentage to indicate how much something has increased or decreased relative to its initial value.

Coefficient Of Correlation

A numerical measure that represents the strength and direction of a linear relationship between two variables.

Covariance

A measure indicating the extent to which two variables change together, revealing whether an increase in one variable tends to be accompanied by an increase (positive covariance) or decrease (negative covariance) in the other.