Problems of using investment centers include all of the problems associated with profit centers plus all of the following EXCEPT:
A)how to identify the assets used by each investment center.
B)how to assign the responsibility for jointly-used assets such as buildings.
C)how to determine the value of the assets used by each investment center.
D)what method to use to depreciate the assets.

Question

Quizplus · Accepted Answer

While problems associated with identifying and assigning responsibility for assets used by each investment center exist, the method of depreciation to be used is not typically a problem in investment centers. This is because investment centers tend to have their own capital budgets and make significant investments in assets, which allows them to choose their own depreciation methods.

Problems of Using Investment Centers Include All of the Problems