JetSky Airways has three divisions,the Western Division,the Eastern Division,and the Northern Division.The manager of the Western Division had wanted to purchase replacement airplanes for the division.However,he decided against it because,although revenues would increase and the new planes would be less expensive to operate,the initial cost of the planes was quite large.The Western Division is most probably accounted for as a(n)
A)cost center.
B)investment center.
C)profit center.
D)revenue center.
E)none of these.

Question

Quizplus · Accepted Answer

The Western Division is likely an investment center because the manager is considering both the costs and revenues, indicating responsibility for both profits and investments.

JetSky Airways Has Three Divisions,the Western Division,the Eastern Division,and the Northern