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

Question

Quizplus · Accepted Answer

A profit center is a segment of a business responsible for both generating revenue and incurring costs. This means that the performance of a profit center is measured by the profitability of its operations. Profit centers have decision-making autonomy and are responsible for determining their own pricing, marketing, and production strategies. They are also responsible for controlling their own costs and managing their own assets.

Which of the Following Best Describes a Segment of a Business