A separate unit responsible for its own costs and profits is referred to in the text as a(n)________.
A) economic unit
B) specialized unit
C) profit center
D) cost center

Question

Quizplus · Accepted Answer

A profit center is a separate unit within a larger organization that is responsible for its own costs and profits. This unit is typically measured and evaluated based on its ability to generate income and contribute to the overall profitability of the organization. Specialized unit and economic unit are not specific terms related to this description, and a cost center is a unit responsible for its own costs but not necessarily its own profits.

A Separate Unit Responsible for Its Own Costs and Profits