Some organizations choose a responsibility center to focus on selecting assets to reach a target return and then putting those profits back into the business or other assets. Certain organizations have done this to great success including Amazon, Netflix, and the New York Yankees. Which of the following best represents the most accurate responsibility center as described?
A) Cost Center
B) Investment Center
C) Profit Center
D) Revenue Center

Question

Quizplus · Accepted Answer

This question requires familiarity with responsibility centers and how the types of centers are different from one another. An investment center will focus on selecting assets to generate a target return that it will then reinvest with the goal of earning more. Choice B is the choice that correctly identifies an investment center as the kind of responsibility center described in the problem. Choices A, C, and D all represent other types of centers that do not fit this description.

Some Organizations Choose a Responsibility Center to Focus on Selecting