The Term Responsibility Center Reflects the Idea That the "Centers

question 36

Multiple Choice

The term responsibility center reflects the idea that the "centers" of a business usually are defined in a manner such that each center is:

• A)Responsible for earning a specified amount of profit.
• B)Responsible for all business operations in a specific region.
• C)Under the control of a specified center manager.
• D)Approximately the same size.

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Definitions:

Consolidation Process

The method of combining the financial statements of two or more legally distinct entities into a single set of financial statements.

Open Market

An economic market with few to no barriers to entry, where goods, services, and financial instruments are traded freely.

Accounted

The process of recording, classifying, and summarizing financial transactions to provide an accurate and complete picture of a business's financial position.

Stock Traded

Shares of ownership in a company that are bought and sold on a stock exchange.