To evaluate the performance of a(an)________, a top manager is responsible for revenues, costs, and the efficient use of the assets invested in the division.
A)cost center
B)investment center
C)profit center
D)revenue center

Question

Quizplus · Accepted Answer

An investment center is responsible for revenues, costs, and the efficient use of the assets invested in the division. A top manager in an investment center is evaluated based on the return on investment (ROI) they generate with the assets they have been given. This includes not only generating profits, but also making sure that the assets invested in the division are being efficiently used. A cost center is responsible only for controlling costs, a revenue center is responsible only for generating revenue, and a profit center is responsible for both generating revenue and controlling costs, but not for efficiently using assets.

To Evaluate the Performance of A(an)________, a Top Manager Is