John McGee Is Responsible for Managing the Midwest Sales Region

question 89

Multiple Choice

John McGee is responsible for managing the Midwest sales region of a home health care service company. His business unit would most accurately be described as a(n) :

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

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Definitions:

Inventory

Items held for sale in the ordinary course of business, or supplies and raw materials that are used in production.

Partnership

A business structure where two or more individuals share ownership, profits, and liabilities.

Bonus

A financial reward given to employees or stakeholders beyond their normal compensation, often tied to performance or specific achievements.

Capital Balances

The amounts of money that partners or owners have invested in a business, as recorded in the accounts.