Questions: Which of the following terms is used to describe a cost center whose costs are charged to other departments in the organization? Note: Do not round intermediate calculations. Muitiple Choice Intermedlate cost center. Final cost center. None of the choices is correct. Proprietary cost center. Initlal cost center.

Which of the following terms is used to describe a cost center whose costs are charged to other departments in the organization?
Note: Do not round intermediate calculations.

Muitiple Choice
Intermedlate cost center.
Final cost center.
None of the choices is correct.
Proprietary cost center.
Initlal cost center.
Transcript text: Which of the following terms is used to describe a cost center whose costs are charged to other departments in the organization? Note: Do not round intermediate calculations. Muitiple Choice Intermedlate cost center. Final cost center. None of the choices is correct. Proprietary cost center. Initlal cost center.
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Solution

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Answer

The answer is Intermediate cost center.

Explanation
Option 1: Intermediate cost center

An intermediate cost center is a department or unit within an organization whose costs are allocated to other departments. This is because the intermediate cost center provides services or products that support other departments, and its costs need to be distributed accordingly.

Option 2: Final cost center

A final cost center is typically the end point where costs are accumulated and not further allocated to other departments. It is the opposite of an intermediate cost center.

Option 3: None of the choices is correct

This option is incorrect because "Intermediate cost center" is a valid term used to describe the scenario in question.

Option 4: Proprietary cost center

A proprietary cost center is not a standard term used in cost accounting to describe a cost center whose costs are charged to other departments.

Option 5: Initial cost center

An initial cost center is not a recognized term in cost accounting for describing a cost center whose costs are charged to other departments.

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