A Unit of a Business That Not Only Incurs Costs

question 142

Multiple Choice

A unit of a business that not only incurs costs, but also generates revenues, is called a:

• A) Performance center.
• B) Profit center.
• C) Cost center.
• D) Responsibility center.
• E) Expense center.

---

Definitions:

Standard Deviation

An indicator of the degree of variability or spread within a dataset, reflecting the extent to which the data points diverge from the average value.

Variance

An index of variability in a set of data, established by taking the average squared deviation from the mean.

Tchebysheff's Theorem

A theorem that states for any real numbers k > 1, at least (1-1/k^2) of the data values fall within k standard deviations of the mean for any distribution.

Empirical Rule

A statistical rule stating that for a normally distributed dataset, about 68% of values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations from the mean.