The responsibility center in which the manager has responsibility and authority over revenues and costs,but not assets,is the:
A)cost center.
B)investment center.
C)profit center.
D)revenue center.

Question

Quizplus · Accepted Answer

A profit center is responsible for both revenues and costs, and the manager has the authority to make decisions that affect both. However, they are not responsible for assets, which is the responsibility of an investment center. Cost centers are responsible for controlling costs, and revenue centers are responsible for generating revenues, but neither has responsibility for both.

The Responsibility Center in Which the Manager Has Responsibility and Authority