The Manager of Center D Designs, Produces, and Sells Products

question 22

Multiple Choice

The manager of Center D designs, produces, and sells products to external parties. The manager makes both long-term and short-term decisions. What type of responsibility center is Center D?

• A) Cost center
• B) Profit center
• C) Revenue center
• D) Investment center

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Definitions:

High-Cost Items

Products or services that have a significantly higher price due to their quality, complexity, or brand reputation.

Specific Identification

A method for inventory costing and valuation that tracks the cost of individual items or batches of items.

First-In, First-Out

An inventory valuation method where goods purchased or produced first are sold or used first.

Inventory Method

Inventory methods are accounting approaches used to value and manage a company's inventory, including techniques like FIFO (First In, First Out) and LIFO (Last In, First Out).