A good example of a profit center would be
A)a car manufacturer's assembly line.
B)a local Home Depot store.
C)Avis Car Rental's national reservation center.
D)a manufacturer's human resources department.

Question

Quizplus · Accepted Answer

A profit center is a business unit that generates revenue and incurs expenses, and is therefore responsible for its own financial performance. Home Depot's stores are good examples of profit centers because they sell goods and services directly to customers, generate revenue through sales, and are responsible for their own operating expenses. In contrast, while the car manufacturer's assembly line and Avis Car Rental's national reservation center both generate revenue, they may be considered cost centers instead of profit centers because their revenue is earned through support functions rather than direct sales to customers. The manufacturer's human resources department is typically considered a cost center because it supports the company's overall operations rather than generating revenue directly.

A Good Example of a Profit Center Would Be