A Responsibility Center in Which the Department Manager Is Responsible

question 188

Multiple Choice

A responsibility center in which the department manager is responsible for costs, revenues, and assets for a department is called:

• A) a cost center
• B) a profit center
• C) an operating center
• D) an investment center

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Definitions:

Salvage Company

A firm that specializes in recovering and processing materials from failed projects or discarded products.

Net Working Capital

The disparity between a company's immediate assets and immediate liabilities, showcasing its short-term economic well-being.

Straight-Line Depreciation

An accounting method that allocates the cost of a tangible asset evenly over its useful life.

Variable Cost

Outlays that shift in alignment with the quantity of output generated.