Which of the Following Is FALSE Concerning Profit Centres and Cost

question 70

Multiple Choice

Which of the following is FALSE concerning profit centres and cost centres?

• A)A profit centre can exist within a centralized organization.
• B)A profit centre can exist within a decentralized organization.
• C)A cost centre can exist within a centralized organization.
• D)A cost centre can exist within a decentralized organization.
• E)If a profit centre exists within a centralized organization, there cannot be any cost centres in the organization.

---

Definitions:

Noncurrent Debt

A liability not requiring payment within the current fiscal year, typically extending beyond one year.

Refinancing

The process of replacing an existing loan with a new loan that usually has better terms, such as a lower interest rate.

FASB

Financial Accounting Standards Board, an organization responsible for setting accounting and financial reporting standards in the United States.

IFRS

International Financial Reporting Standards, a set of accounting standards that provide guidelines for financial reporting, aiming to make company accounts understandable and comparable across international boundaries.