Which of the Following Is Considered a Responsibility Center

question 144

Multiple Choice

Which of the following is considered a responsibility center?

• A) Investment center.
• B) Profit center.
• C) Revenue center.
• D) All are responsibility centers.

Understand how manufacturing overhead is applied to production and its effect on inventory accounts.

Comprehend the process of moving costs from Work in Process to Finished Goods and then to Cost of Goods Sold.

Understand the implications of a credit balance in the Manufacturing Overhead account.

Understand the process and reasons for applying or underapplying manufacturing overhead.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.

Share Capital

Fund raised by a company through the issuance of shares to investors, representing the equity stake of shareholders in the company.

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends but are kept as reinvestment in the company or to pay off debt.

Fair Value

What one would receive for selling an asset or pay to transfer a liability in a structured deal among those active in the market at the point of measurement.