The Individual Who Would Most Likely Use Only Financial Accounting

question 115

Multiple Choice

The individual who would most likely use only financial accounting information in making decisions is a

• A) vice president of marketing.
• B) factory supervisor.
• C) department manager.
• D) company stockholder.

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Definitions:

Transfer Price

The price at which goods and services are traded between departments within the same company or between subsidiaries, often used for budgeting and tax purposes.

Responsibility Center

A unit within an organization tasked with specific duties and responsibilities, where performance is measured based on predetermined financial and operational metrics.

Profit Center

A profit center is a segment or division within a company that is responsible for generating its own revenue and profit, evaluated separately for assessing its performance.

Decentralized

A structure in a business or organization where decision-making authority is distributed among various levels or locations rather than concentrated at the top.