Which of the following statement is correct about the functions that fall within various responsibility centers?
A) A revenue center manager is responsible for more functions than a profit center manager is.
B) A revenue center manager is responsible for fewer functions than a profit center manager is.
C) A revenue center manager is responsible for the same number of functions as a profit center manager is.
D) A revenue center manager is not responsible for any functions; only the profit center manager is responsible for functions.

Question

Quizplus · Accepted Answer

A revenue center manager is responsible for generating revenue only, while a profit center manager is responsible for not only generating revenue but also managing costs and expenses to ensure profitability. Therefore, a profit center manager has more functions to perform than a revenue center manager.

Which of the Following Statement Is Correct About the Functions