In a Profit Center,the Manager Has Responsibility and Authority for Making

question 25

Multiple Choice

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

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

---

Definitions:

Net Present Value

A method of evaluating investments by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Initial Investment

The initial amount of money spent to start a project, investment, or business, often including costs such as purchasing equipment, property, or technology.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows from an investment or project equals zero, used as a gauge for its profitability.

Working Capital

The amount of current assets minus current liabilities, indicating the liquidity of a business.