A Responsibility Center in Which the Authority Over and Responsibility

question 31

True/False

A responsibility center in which the authority over and responsibility for costs and revenues is vested in the department manager is termed an investment center.

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Definitions:

Major Business Function

Core activities essential for the operation and success of a business, such as marketing, production, and sales.

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are either difficult to manage or are outside of a business's core competencies.

Benefits Administration

The process and system by which employee benefit programs are designed, implemented, and managed by an organization.

Information Technology Management

Refers to the process of overseeing all matters related to information technology operations and resources within an organization.