Higgins Corporation is in the process of overhauling the performance evaluation system for its Los Angeles manufacturing division, which produces and sells parts that are popular in the aerospace industry. Which of the following is least likely to be chosen to evaluate the overall operations of the Los Angeles division?
A) Cost center.
B) Responsibility center.
C) Profit center.
D) Investment center.
E) The profit center and investment center are equally unlikely to be chosen.

Question

Quizplus · Accepted Answer

A cost center is least likely to be chosen because it focuses only on controlling costs and does not account for revenue generation or investment returns, which are crucial for evaluating the overall operations of a division involved in production and sales.

Higgins Corporation Is in the Process of Overhauling the Performance