A responsibility centre that is held accountable for controlling both costs and income is called a(n):
A) cost object.
B) investment centre.
C) profit centre.
D) cost centre.

Question

Quizplus · Accepted Answer

A profit centre is responsible for controlling both costs and income, as it is focused on generating profits for the organization. Cost centres are responsible for controlling costs only, investment centres are responsible for generating returns on investments, and cost objects are items that incur costs but are not responsible for controlling them.

A Responsibility Centre That Is Held Accountable for Controlling Both