The Type of Department That Generates Revenues and Incurs Costs

question 13

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

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Definitions:

Competitive Labor Market

A labor market characterized by numerous employers and job seekers, where wages are determined by supply and demand for labor.

Unionization

The process by which workers join together to form a union in order to collectively bargain with their employer regarding wages, benefits, and working conditions.

Essential Services

Services deemed crucial for public welfare that cannot be interrupted, like healthcare and public transport, often subject to special labor relations rules regarding strikes.

Labor Market

The arena in which workers seek employment and employers seek workers, governed by the forces of supply and demand for labor.