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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

For what decisions is the manager of a cost center not responsible?

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directly

Investment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To Identify:

The decision for which the manager of a cost center is not responsible

Explanation

Cost center incurs costs and does not generate the revenue directly. Investment center takes care of revenue, cost and investment...

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