The Type of Department That Generates Revenues and Incurs Costs,and

question 5

Multiple Choice

The type of department that generates revenues and incurs costs,and its manager is responsible for the investments made in operating assets is called a(n) :

• A)Profit center
• B)Cost center
• C)Service department
• D)Investment center
• E)Responsibility center

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Definitions:

Trade Barriers

Measures such as tariffs, quotas, and regulations that governments use to control the amount and type of goods and services imported or exported.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, underpinning international trade theories.

Absolute Advantage

The ability of an entity to produce a good or service at a lower cost per unit than other competitors using the same amount of resources.

Trade Surplus

A situation where a country's exports exceed its imports over a given period, indicating a positive balance of trade.