Pace Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 38P
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Pace Company makes computer chips. Sam is manager of the company's
maintenance department. Because his maintenance technicians are so well trained in
maintaining expensive and sensitive circuit board stamping equipment, Sam has been
authorized to contract to perform maintenance for outside customers. In this
company, the maintenance department is likely organized as:
a) A profit center.
Ob) A revenue center.
c) A cost center.
d) An investment center.
Transcribed Image Text:Pace Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as: a) A profit center. Ob) A revenue center. c) A cost center. d) An investment center.
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