Which responsibility centers generate both revenues and costs?
A) Investment and profit centers
B) Profit and cost centers
C) Cost and investment centers
D) Only profit centers

Question

Quizplus · Accepted Answer

Profit centers and investment centers both generate revenues and costs. Profit centers are responsible for both their costs and revenues, aiming to maximize the difference between them. Investment centers, in addition to being responsible for profits, also make decisions about the assets they use to generate those profits, affecting both their costs and revenues.

Which Responsibility Centers Generate Both Revenues and Costs