The Statement That Is True in Relation to Engineering Cost

question 12

Multiple Choice

The statement that is true in relation to engineering cost centres is:

• A) Planning is more difficult in engineering cost centres than in discretionary cost centres
• B) The research and development department of an organisation is likely to be an engineering cost centre
• C) In a manufacturing firm departments where standard products are produced are likely to be engineering cost centres
• D) All of the statements are true

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Definitions:

Capital Structure

The mixture of debt and equity financing that a company uses to fund its operations and growth.

Coupon Rate

The interest rate promised to be paid by the issuer of a bond to the bondholder on the face value of the bond.

Component Weight

This refers to the proportional value of each component within a portfolio or mixture, often used in finance to denote the percentage of each asset in a total investment portfolio.

Market Values

The current price at which an asset or service can be bought or sold in an open and competitive marketplace.