A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a (n):
A) cost center.
B) revenue center.
C) profit center.
D) investment center.
E) contribution center.

Question

Quizplus · Accepted Answer

An investment center is a type of responsibility center where the manager is accountable not only for generating profits but also for the efficient use of assets and capital to achieve those profits. This contrasts with cost centers, revenue centers, and profit centers, which focus more narrowly on costs, revenues, and profits respectively, without directly considering the return on investment.

A Responsibility Center in Which the Manager Is Held Accountable