Dell's Payroll Department Preparing Its Budget Based Upon Payroll Expenses

question 22

Multiple Choice

Dell's payroll department preparing its budget based upon payroll expenses would be a(n) :

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

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Definitions:

Planning Budget

A financial forecast or projection, detailing expected revenues and expenses within a future period.

Net Operating Income

The profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.

Activity Variance

The difference between the budgeted and actual amount of an activity, such as hours worked or units produced, affecting budget and cost planning.