Multiple choice

Directions: Choose the correct option and complete the sentence.

_____ is the smallest segment of activity for which costs are accumulated.

  1. Profit centre

  2. Cost centre

  3. Cost unit

  4. Profit unit

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A cost center is defined as a location, person, or item of equipment (or group of these) for which costs may be ascertained and used for cost control.

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