Asked by Timofei Bolshev on Jul 20, 2024

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The data processing department of a tax firm would be a profit center.

Profit Center

A segment or branch of a business responsible for generating its own revenue and profit.

Data Processing Department

A department within an organization that processes and manages data, turning raw data into usable information.

Tax Firm

is a company that specializes in offering tax services, including tax preparation, consultation, and filing for individuals and organizations.

  • Differentiate among cost centers, profit centers, and revenue centers.
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TM
titus morrisJul 21, 2024
Final Answer :
False
Explanation :
The data processing department of a tax firm is typically considered a cost center because it does not directly generate revenue but incurs costs to support the firm's primary revenue-generating activities.