A manager who has the ability to replace assets within his division, is in control of what type of center?
A)Business center
B)Profit center
C)Cost center
D)Investment center

Question

Quizplus · Accepted Answer

An investment center is a unit or division of an organization that has the authority to make decisions regarding the acquisition and disposal of fixed assets. This means that the manager has the ability to replace assets within his division, which indicates that he is in control of an investment center. Business centers and profit centers may have control over revenues, but not necessarily over fixed asset investments. Cost centers are responsible for controlling costs but do not make decisions about asset investments.

A Manager Who Has the Ability to Replace Assets Within