A Responsibility Center in Which the Authority Over and Responsibility

question 100

True/False

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

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Definitions:

Employment

The condition of having paid work; the relationship between an employer and an individual who is compensated for performing specified tasks or services.

Government Subsidy

Financial assistance provided by the government to individuals, organizations, or industries to support certain activities or reduce costs.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.

Product Sellers

Entities that offer goods or services for sale to consumers.