Investment centers differ from profit centers in that they
A) are responsible for net income only
B) are able to invest in assets
C) have less responsibilities than cost centers and profit centers
D) are only responsible for revenues

Question

Quizplus · Accepted Answer

Investment centers are responsible for both generating profits and investing in assets to achieve future growth. Profit centers are only responsible for generating profits, while cost centers are responsible for managing costs. Investment centers therefore have a greater level of responsibility compared to cost and profit centers. Option A and D are incorrect because investment centers are responsible for both revenues and net income.

Investment Centers Differ from Profit Centers in That They