A responsibility center for which a separate measure of revenues and costs is obtained is called a(n)________.
A)cost center
B)contribution center
C)contribution margin center
D)segment

Question

Quizplus · Accepted Answer

A responsibility center for which a separate measure of revenues and costs is obtained is called a segment. Cost centers are responsible for controlling costs only, while contribution centers are responsible for generating revenues and controlling costs. A contribution margin center is a type of contribution center that focuses on the contribution margin (the amount of revenue left over after deducting variable costs). However, none of these fully match the definition given in the question, making option D the correct choice.

A Responsibility Center for Which a Separate Measure of Revenues