Answered: The Maintenance Department of a company…

The Maintenance Department of a company is considered to be a: A) Revenue Center B) Cost Center C) Profit Center D) None of the above

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 1SEQ: When the manager has the responsibility and authority to make decisions that affect Costs and...

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Question

The Maintenance Department of a company is considered to be a:
A) Revenue Center
B) Cost Center
C) Profit Center
D) None of the above

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Which of the following is NOT correct about cost center and cost unit?Select one:a. A cost center is defined as "a location, person, or item of equipment for which costs may be ascertained and used for the purpose of control.b. a cost center refers to a section of the business to which costs can be charged. It may be a location, an item of equipment, or a person.c. A cost unit is defined as a unit o/product, service or time in relation to which cost may be ascertained or expressed.d. In any organization, there is either cost center or cost unit; they are alternatives for each other.
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TRUE OR FALSE Activity center is a unit in an organization for which management wants the costs of a set of activities be reported separately.