Asked by Marie Brandt on May 30, 2024
Verified
Support departments are normally accounted for as an investment center.
Investment Center
A business unit within an organization that is directly responsible for generating revenue as well as controlling its costs and investments.
Support Departments
Departments within a business that provide essential services and support to the primary operations but do not directly generate revenue.
- Gain an understanding of the function and grouping of support sections within a business entity.
Verified Answer
CE
Christine EliasJun 05, 2024
Final Answer :
False
Explanation :
Support departments are typically accounted for as cost centers because they do not generate revenue directly but incur costs to support other departments that do generate revenue.
Learning Objectives
- Gain an understanding of the function and grouping of support sections within a business entity.
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