The responsibility center whose inputs are measured in monetary terms, but whose output is not, is ………………..
A)Revenue center
B)Expense center
C)Profit center
D)Investment center

Question

Quizplus · Accepted Answer

Expense centers are evaluated based on the inputs (costs or expenses) in monetary terms, but their outputs are not directly measured in monetary terms. This contrasts with revenue centers (focused on generating income), profit centers (focused on both revenue and costs), and investment centers (evaluated on the use of capital as well as profit).

The Responsibility Center Whose Inputs Are Measured in Monetary Terms