A separate company unit responsible for its own cost and revenue is referred to as which of the following?
A) Centralized organization
B) Decentralized organization
C) Department
D) Job specialty
E) Profit center

Question

Quizplus · Accepted Answer

A profit center is a unit within a company that is responsible for its own cost and revenue, and is evaluated based on the profit it generates. This type of organizational structure is known as a decentralized organization, where decision-making authority is distributed to various units throughout the company. A department or job specialty may also be responsible for its own costs, but it may not necessarily be evaluated based on the profit it generates. A centralized organization, on the other hand, typically has decision-making authority concentrated at the top of the company hierarchy, and may not have separate units responsible for their own costs and revenues.

A Separate Company Unit Responsible for Its Own Cost and Revenue