Which of the following best describes a segment of a business responsible for both revenues and expenses?
A) A cost centre.
B) An investment centre.
C) A profit centre.
D) A residual income centre.

Question

Quizplus · Accepted Answer

A profit centre is responsible for generating both revenues and expenses, as it is focused on generating profit. Cost centres are responsible for expenses only, investment centres are responsible for generating returns on investments, and residual income centres are focused on generating residual income after expenses are covered.

Which of the Following Best Describes a Segment of a Business