The Way in Which the Performance of a Cost Center

question 36

Multiple Choice

The way in which the performance of a cost center is evaluated is similar to

• A)job order costing.
• B)standard costing.
• C)process costing.
• D)marginal costing.

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Definitions:

Covenants

Agreements or promises in a formal loan or bond agreement that cover certain conditions, actions, or restrictions taken by the borrower.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Dividend

A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders, typically in the form of cash payments or additional shares.

Net Profits

The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.