The manager of a profit center has the responsibility for making decisions that affect the center's _____.
A) costs, revenues, and investment in fixed assets.
B) investment in fixed assets, but not costs.
C) costs and revenues, but not investment in fixed assets.
D) revenues and investment in fixed assets, but not costs.

Question

Quizplus · Accepted Answer

The manager of a profit center has responsibility for making decisions that affect the center's costs and revenues, which ultimately impact the center's profitability. However, the investment in fixed assets is typically decided by higher levels of management, such as the corporate office or the capital budgeting team. Therefore, choice A, B, and D are incorrect as they include investment in fixed assets in the manager's responsibility, which is not entirely true for a profit center manager.

The Manager of a Profit Center Has the Responsibility for Making