(CMA)Responsibility Accounting Defines an Operating Centre That Is Responsible for Revenue

question 15

Multiple Choice

(CMA) Responsibility accounting defines an operating centre that is responsible for revenue and costs as a(n) :

• A)Profit centre
• B)Revenue centre
• C)Division
• D)Investment centre

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Definitions:

Projected Taxable Income

An estimate of an entity's income for a fiscal period that is subject to income tax.

CCPC

Canadian-Controlled Private Corporation; a designation in Canada for privately owned companies that meet certain criteria for tax purposes.

Net Operating Profit After Taxes (NOPAT)

A measure of an organization's operational efficiency, representing its earnings before interest and taxes minus taxes.

EBIT

Earnings Before Interest and Taxes (EBIT) measures a company's operational profitability by excluding interest and taxes from its net income.