The success of a(n)________ is measured not only by its income, but also by relating that income to its invested capital.
A)cost center
B)investment center
C)profit center
D)revenue center

Question

Quizplus · Accepted Answer

The concept being described in the question is the measure of profitability of an investment, which is determined by comparing the income generated with the capital invested. This is the responsibility of an investment center, as it is accountable for the return on the capital invested, in addition to generating revenue. Cost centers are responsible for generating expense reports, revenue centers are responsible for generating revenue, and profit centers are responsible for generating both revenue and controlling costs.

The Success of A(n)________ Is Measured Not Only by Its