Nora Kelly,one of the Managers of a Multi-National Company,is Responsible

question 232

Multiple Choice

Nora Kelly,one of the managers of a multi-national company,is responsible for generating revenues and controlling costs in order to increase the operating income of her division.However,she is not concerned about investment-related decisions.Nora is most likely to be the manager of a(n) ________.

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

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may differ from the calendar year.

FIFO Perpetual

A continuous inventory system where the cost of goods sold is calculated using the FIFO method, consistently updating the inventory and cost records after each transaction.

Total Sales

The sum of all revenue generated from the sale of goods or services over a specified period.

Gross Profit

A company's revenue minus its cost of goods sold, indicating how efficiently a company uses its resources in production.