A responsibility centre which is responsible for both cost inputs and revenue is known as a:
A)cost centre.
B)revenue centre.
C)profit centre.
D)investment centre.

Question

Quizplus · Accepted Answer

A profit centre is responsible for both cost inputs and revenue. It focuses on generating revenue while controlling costs to generate a profit for the organization. The other options do not consider the revenue generated by the centre. A cost centre is responsible only for controlling costs, a revenue centre focuses only on generating revenue, and an investment centre is responsible for both inputs and outputs but mainly focuses on return on investment.

A Responsibility Centre Which Is Responsible for Both Cost Inputs