In an investment center, the manager has the responsibility for and the authority to make decisions that affect
A) the assets invested in the center, but not costs and revenues
B) costs and assets invested in the center, but not revenues
C) both costs and revenues for the department or division
D) costs, revenues, and assets invested in the center

Question

Quizplus · Accepted Answer

An investment center is responsible for generating revenues, incurring costs, and managing the assets invested in the center. Therefore, the manager of an investment center must have the authority and responsibility to make decisions that affect all three aspects - costs, revenues, and assets invested in the center. Choice D includes all three aspects of the investment center, making it the correct answer.

In an Investment Center, the Manager Has the Responsibility for and the Authority