A segment of Mega Inc.,manufactures and sells blankets.The various models of blankets are produced in a single factory using stable technology.They are sold by the sales department,also located in the factory.The segment is most probably accounted for as a(n)
A)cost center.
B)revenue center.
C)profit center.
D)investment center.
E)none of these.

Question

Quizplus · Accepted Answer

The segment's sales department generates revenue, and the segment itself is responsible for covering all costs associated with producing and selling the blankets, so it can be considered a profit center.

A Segment of Mega Inc