Any Part of an Organization to Which Revenue and Controllable

question 31

Multiple Choice

Any part of an organization to which revenue and controllable costs can be assigned is termed a(n) :​

• A)​profit center
• B)​business entity
• C)​small business unit
• D)​division

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Reportable Segment

A part of a company that can be identified for reporting purposes due to its operations, products, or services.

Operating Profit

A measure of profit that reflects the income earned from the business’s core operations, excluding any costs and revenues from non-operating activities.