Which of the Following Is Not One of the Common

question 155

Multiple Choice

Which of the following is not one of the common types of responsibility centers?

• A) Cost Center
• B) Profit Center
• C) Investment Center
• D) Revenue Center

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Definitions:

Customization

The process of modifying or building a product, service, or system according to individual or customer requirements.

Installment Sales Contracts

Contracts in which the buyer agrees to pay the purchase price of an asset in several periodic payments.

Revenue Recognition

The principle that dictates the specific conditions under which revenue can be recognized by an entity in its financial statements.

Revenue Recognition

This is an accounting principle that dictates the specific conditions under which income becomes recognized as revenue.