The Regional Sales Department for Xerox Copiers May Be Classified

question 178

Multiple Choice

The regional sales department for Xerox copiers may be classified as a(n)

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

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Definitions:

Financing Activity

Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.

Capital Stock

The total amount of a company's share equity including both common and preferred shares, representing the initial investment in the business.

Free Cash Flow

A measure that assesses a company’s ability to fund its capital expenditures and dividends from its net cash provided by operating activities.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.