In a profit center, the manager has responsibility and authority for making decisions that affect:
A) liabilities
B) assets
C) investments
D) costs

Question

Quizplus · Accepted Answer

In a profit center, the manager is responsible for generating profit by controlling and managing costs. Therefore, the manager's decisions directly affect the costs and indirectly affect the assets and investments of the organization. Liabilities are not typically under the purview of a profit center manager.

In a Profit Center, the Manager Has Responsibility and Authority