A Responsibility Center in Which the Department Manager Has Responsibility

question 92

True/False

A responsibility center in which the department manager has responsibility for and authority over costs in the department is termed a cost center.

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Definitions:

Production

The process of creating goods and services.

Cattle

Domesticated large mammals bred by humans for purposes like milk, meat, leather, and labor.

Wheat

A cereal grain considered a staple food across the globe, used to make products like bread, pasta, and other foods.

Opportunity Cost

The value of the best alternative that is not chosen, to illustrate the trade-offs associated with any decision.