Question

How does a cost center differ from either an investment center or a profit center? (A)...

How does a cost center differ from either an investment center or a profit center?

(A) A cost center recognizes neither revenues nor computes income.

(B) Cost centers are a much less common component of current business organizations, given the increased emphasis on value chain analysis.

(C) A cost center is always smaller than either an investment center or a profit center.

(D) None of these

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Question

Answer: (A) A cost center recognizes neither revenues nor computes income.

Explanation:

A cost centre is centre which is responsible for its cost a cost centre is not generate any revenue

Example of cost centre is adminstrative department such ast the IT and accounting department

Investment centre is reponsible for profit and the cost of the centre, manager of investment centre is also responsible for the investment that it earnes profit for the department.

Profit centre is department that incurs cost but also generates revenue by selling goods and services,  protit equals to revenue minus cost

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Profit centers are associated with which organizational structure? A. Functional Structure B. Simple Structure C. Geographic...
Profit centers are associated with which organizational structure? A. Functional Structure B. Simple Structure C. Geographic Divisional Structure D. None of the Above Tall organizations tend to be best suited for? A. Dynamic Environments B. Stable Environments C. Either Dynamic or Stable Environments D. Neither Dynamic or Stable Environments The increase in the length of the organization’s hierarchy is called A. Horizontal Growth B. Vertical Growth C. Span of Control D. Organizational Structure The structure that combines parts of two...
5.) How does absorption-cost valuation of inventory differ from variable-cost valuation of inventory? a. Absorption cost...
5.) How does absorption-cost valuation of inventory differ from variable-cost valuation of inventory? a. Absorption cost valuation of inventory includes fixed manufacturing overhead. b. Absorption cost valuation of inventory is always less than variable cost valuation of inventory c. Absorption cost valuation of inventory includes variable selling costs. d. Absorption cost valuation of inventory includes fixed selling costs. 6.) One advantage of absorption costing is? a. Companies can avoid using estimates in product costing. b. Companies always report higher net...
True or False—Indicate if the statement is True (T) or False (F) for each of the...
True or False—Indicate if the statement is True (T) or False (F) for each of the following 10 statements: __________ 1. The variances between actual operating results and the initial static budget are almost always made up of both a volume variance and a flexible budget variance as actual volume often varies from planned volume and actual costs differ from budgeted cost. __________ 2. The variances are considered to be unfavorable when actual costs exceed budgeted costs and actual sales...
A disadvantage of both proprietorships and partnerships is that a. in each, profit is taxed twice,...
A disadvantage of both proprietorships and partnerships is that a. in each, profit is taxed twice, as the income of the firm and the income of the owners. b. the owners cannot hire managers to help run the firms. c. the firms cannot pay dividends. d. the owners have unlimited liability for the debts of the firms. ____   27.   A corporation's income is taxed a. immediately after it is deposited in the bank. b. only before it is distributed to...
1. The internal rate of return identifies: A. the minimum acceptable discount rate. B. the cost-benefit...
1. The internal rate of return identifies: A. the minimum acceptable discount rate. B. the cost-benefit ratio. C. the average profit from a project. D. none of the given answers. 2. The net present value rule states that you should accept a project if the NPV: A. is equal to zero or negative. B. exceeds the required rate. C. is less than 1.0. D. is positive. 3. A net present value of zero implies that an investment: A. has an...
Ben Ofosu graduated from college six years ago with a finance undergraduate degree. Although he is...
Ben Ofosu graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either GIMPA or UGBS. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will...
1- Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer...
1- Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer to leave their cash outside the United States because using those funds to pay dividends or purchase treasury stock would Select one: a. promote foreign investment. b. require a big U.S. corporate income tax payment. c. create pressure for decreased exporting. d. decrease foreign exchange. e. inflate stock prices. 2- In projected financial statements, what is used as a plug figure? Select one: a....
Analysis: This section should include the issue register as a bare minimum, but may include also...
Analysis: This section should include the issue register as a bare minimum, but may include also why-why diagrams, a Pareto chart, a waste table and/or value-added analysis table. Flow analysis or simulation of this case study might be possible but might require making a lot of assumptions given the provided data. The first part of the project: Introduction    Walmart has continued to retain the top position on the Fortune 500 list for a consecutive fifth year. The brand has...
The Business Case for Agility “The battle is not always to the strongest, nor the race...
The Business Case for Agility “The battle is not always to the strongest, nor the race to the swiftest, but that’s the way to bet ’em!”  —C. Morgan Cofer In This Chapter This chapter discusses the business case for Agility, presenting six benefits for teams and the enterprise. It also describes a financial model that shows why incremental development works. Takeaways Agility is not just about the team. There are product-management, project-management, and technical issues beyond the team’s control. Lean-Agile provides...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT