Which Responsibility Centre Designation Would Be Used for a Production

question 136

Multiple Choice

Which responsibility centre designation would be used for a production manager?

• A)an investment centre
• B)a revenue centre
• C)a profit centre
• D)a cost centre

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Definitions:

LIFO Layers

An inventory valuation method where the last items placed in inventory are the first ones to be recorded as sold.

Profit Margin

A financial ratio that indicates the percentage of revenue that exceeds the costs of goods sold, showing how much profit is made on sales.

FIFO

Stands for "first in, first out," an inventory valuation method where the goods first added to inventory are the first ones to be sold.

Historical Cost

The original monetary value of an asset or transaction, without adjustment for inflation or other external factors over time.