A Responsibility Center in Which the Department Manager Is Responsible

question 188

Multiple Choice

A responsibility center in which the department manager is responsible for costs, revenues, and assets for a department is called:

• A) a cost center
• B) a profit center
• C) an operating center
• D) an investment center

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Definitions:

Purely Competitive

An economic setup distinguished by the presence of numerous small companies, an identical product, and extremely simple processes for entering or leaving the market.

Monopolistically Competitive

A market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power.

Diseconomies of Scale

A situation where, as a company or production process increases in size, the cost per unit increases, usually due to inefficiencies.

Advertising Costs

Advertising costs are expenses incurred to promote products, services, or brands through various media channels.