Consider the following three statements:
I.A profit centre has control over both cost and revenue.
II.An investment centre has control over invested funds,but not over costs and revenue.
III.A cost centre has no control over sales.
Which statement(s)is/are correct?
A) I only.
B) II only.
C) I and III only.
D) I and II only.

Question

Quizplus · Accepted Answer

I is correct because a profit centre indeed has control over both costs and revenues, aiming to maximize profit. III is correct because a cost centre focuses on controlling costs and does not handle sales, thus having no control over revenue. II is incorrect because an investment centre has control over costs, revenues, and invested funds, aiming to optimize the return on investment.

Consider the Following Three Statements