In a Cost Center, the Manager Has Responsibility and Authority

question 102

Multiple Choice

In a cost center, the manager has responsibility and authority for making decisions that affect:

• A) revenues
• B) assets
• C) both costs and revenues
• D) costs

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Definitions:

Contingent Liability

A potential financial obligation that may occur depending on the outcome of a future event.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a reporting period.

Note Payable

A written agreement where one party promises to pay another party a definite sum of money either on demand or at a specified future date.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.