The manager of Center A of Harry International is responsible for generating cash inflows and incurring costs with the goal of generating returns for the company.The manager has no responsibility for assets.What type of responsibility center is Center A?
A)Cost center
B)Discretionary cost center
C)Profit center
D)Revenue center

Question

Quizplus · Accepted Answer

Center A is a profit center as the manager is responsible for generating cash inflows and incurring costs with the goal of generating returns for the company. Profit centers are responsible for both revenue and costs, and their performance is measured by the profit they generate.

The Manager of Center a of Harry International Is Responsible