Which of the following is an example of revenue center?
Correct answer: A. sales department
- A. sales department
- B. investing center
- C. marketing department
- D. segment department
Explanation
A sales department is normally a revenue center because its manager is evaluated mainly on revenues generated. A marketing department may influence both costs and revenues, so it is not the clearest example here.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The use of variables to signal whether the strategies are effective or ineffective is classified as _________?
The larger number of manager subordinates and the higher level manager are termed as _________?
A manager who is responsible for only the cost of the company belongs to __________?
The manager who is responsible only for the revenues of the company can be categorized under the ___________?
The significant feature of Kaizen Budgeting is __________?
The system which measures the budget, action and plan of each responsibility center is known as ___________?