A Department That Incurs Costs Without Directly Generating Revenues Is

question 33

Multiple Choice

A department that incurs costs without directly generating revenues is a:

• A) Profit center.
• B) Production center.
• C) Cost center.
• D) Service center.
• E) Performance center.

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Definitions:

Depreciable Plant Assets

Long-term tangible assets used in the production of income that lose value over time and thus are subjected to depreciation accounting.

Balance Sheet

The Balance Sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Marketable Securities

Financial instruments and assets that can easily be converted into cash without significant loss of value.

Investments

Investments refer to assets purchased with the intention of generating income or appreciation, including securities like stocks and bonds, real estate, or other vehicles.