Which of the following is a characteristic of a profit center?
A)The center's manager has control over revenues and costs.
B)The subunit has responsibility for generating revenues, controlling costs, and generating a return on assets.
C)The subunit can be evaluated using residual income.
D)The subunit can be evaluated by comparing it to other investment centers.

Question

Quizplus · Accepted Answer

A profit center is a part of an organization where the manager has control over both revenues and costs, allowing them to be evaluated based on the profit they generate.

Which of the Following Is a Characteristic of a Profit