Which of the following statements regarding investment centers is incorrect?
A) A manager of an investment center is responsible for the investment of capital,but not revenues or expenses.
B) Investment centers are commonly found at the higher levels of an organization chart.
C) A manager of an investment center should be accountable for assets,liabilities,earnings.
D) Return on investment and residual income are tools used to assess managers of an investment center.

Question

Quizplus · Accepted Answer

Investment center managers are responsible for revenues,expenses,and the investment of capital.Investment centers normally appear at the upper levels of an organization chart.Managers of investment centers are accountable for assets and liabilities as well as earnings.The performance of investment center managers is evaluated using ROI or residual income is used to evaluate the performance of investment center managers.

Which of the Following Statements Regarding Investment Centers Is Incorrect