A manager who is responsible for both the revenue and the costs incurred in generating a product or service is managing a
A)Cost center.
B)Product center.
C)Profit center.
D)Investment center.

Question

Quizplus · Accepted Answer

A manager who is responsible for both the revenue and the costs incurred in generating a product or service is managing a profit center. This type of manager is accountable for achieving a certain level of profitability and is given the flexibility to make decisions that will impact both revenue and costs in order to achieve that goal. A cost center is responsible only for controlling costs, a product center is responsible for the performance of a specific product line, and an investment center is responsible for maximizing return on investment within a specific area of the organization.

A Manager Who Is Responsible for Both the Revenue and the Costs