An organizational segment that is responsible for costs and revenues is known as:
A)a financing center.
B)a profit center.
C)a cost center.
D)an investment center.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

A profit center is an organizational segment that is responsible for both generating revenues and controlling costs to earn a profit. This is different from a cost center, which is responsible for controlling costs only, or an investment center, which is responsible for generating revenues and managing investments. A financing center may also be responsible for managing costs and revenues, but its main focus is on financing activities such as issuing debt or equity.

An Organizational Segment That Is Responsible for Costs and Revenues