A Unit or Department That Incurs Costs and Generates Revenues

question 56

Multiple Choice

A unit or department that incurs costs and generates revenues is a(n) :

• A)expense center.
• B)direct center.
• C)cost center.
• D)profit center.

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Definitions:

Leading Indicator

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future economic activity.

Corporate Social Responsibility Objective

A self-regulated business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Land Reclamation

The process of creating new land from oceans, riverbeds, or lake beds, or restoring an area to a more usable state.