In the context of financial MIS subsystems and outputs,a _____ is an independent business unit that is treated as a distinct entity enabling its revenues and expenses to be determined and its profitability to be measured.
A) cost center
B) revenue center
C) profit center
D) sales center

Question

Quizplus · Accepted Answer

A profit center is an independent business unit that is treated as a distinct entity enabling its revenues and expenses to be determined and its profitability to be measured. This means that the unit is responsible for generating its own revenue and is accountable for its expenses, enabling it to be evaluated based on its profitability. Cost centers are responsible for controlling costs but do not generate revenue, while revenue centers focus solely on generating revenue. A sales center is not a commonly recognized term in finance or accounting.

In the Context of Financial MIS Subsystems and Outputs,a _____