A unit of a business that generates revenues and incurs costs is called a:
A)Performance center.
B)Profit center.
C)Cost center.
D)Responsibility center.
E)Expense center.

Question

Quizplus · Accepted Answer

A profit center is a unit or department within a company that generates revenues and directly incurs costs. The performance of a profit center is evaluated based on its ability to generate profits, hence its name.

A Unit of a Business That Generates Revenues and Incurs