There Are Five Types of Responsibility Centers Cost Centers, Revenue

question 83

True/False

There are five types of responsibility centers cost centers, revenue centers, profit centers, investment centers, and financial centers.

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Definitions:

Crowding-In Effect

An increase in private sector spending stimulated by federal budget deficits financed by U.S. Treasury borrowing.

Private Investment

Expenditures by private sector entities on capital goods that are used to produce goods or services in the future.

Government Spending

The total of all public sector expenditures, including public goods and services provided, and investments made by government agencies.

Federal Government

The national government of a federal country, where powers are divided among a central authority and constituent political units.