The difference between a profit center and an investment center is
A)an investment center incurs costs,but does not directly generate revenues.
B)an investment center incurs no costs but does generate revenues.
C)an investment center is responsible for investments made in operating assets.
D)an investment center provides services to profit centers.
E)There is no difference;investment center and profit center are synonymous.

Question

Quizplus · Accepted Answer

A profit center is responsible for both generating revenues and incurring costs, while an investment center is responsible for making investment decisions in operating assets. Therefore, the best choice is C as it accurately describes the difference between the two.

The Difference Between a Profit Center and an Investment Center