Match each term with the correct statement from below.
-is the practice of delegating decision-making authority to lower levels.
A)Centralization
B)Revenue centre
C)Profit centre
D)Cost centre
E)Investment centre
F)Decentralization

Question

Quizplus · Accepted Answer

Decentralization is the practice of delegating decision-making authority to lower levels.

Answer: D
 A cost centre is a department or unit that only incurs expenses and does not generate revenues.

Answer: C
 A profit centre is a department or unit that generates revenues and incurs expenses, and is therefore responsible for its own profits.

Answer: B
 A revenue centre is a department or unit that generates revenues but may not have control over the costs incurred to generate those revenues.

Answer: E
 An investment centre is a department or unit that not only generates revenues and incurs expenses but also has control over the investments made to generate those revenues.

Match Each Term with the Correct Statement from Below