A Profit Center Is Responsible for Generating Revenue, but It

question 21

True/False

A profit center is responsible for generating revenue, but it is not responsible for controlling costs

Comprehend the concept and significance of compensable factors in achieving internal equity.

Understand various job evaluation methods and systems.

Recognize the relevance of job evaluations to organizational goals and compensation policies.

Identify different compensation strategies such as competency-based pay and strategic compensation.

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Definitions:

Liquidating Partnership

The process of terminating a partnership by selling off assets, settling debts, and distributing any remaining assets to the partners.

Capital Accounts

Refers to accounts that show the owners' or shareholders' investments in a business, including retained earnings and contributed capital.

Deficiency

A shortfall or insufficiency in amount or quantity, such as when liabilities exceed assets or when actual performance is less than the standard or expected performance.

Market Value

The existing market rate at which you can purchase or sell an asset or service.