A responsibility center in which a manager is responsible only for sales is a(n)
A) cost center.
B) revenue center.
C) profit center.
D) investment center.
E) None of these.

Question

Quizplus · Accepted Answer

A revenue center is responsible for generating sales revenue. Managers of revenue centers are evaluated based on their ability to increase sales and revenue, but they do not necessarily control the costs associated with generating that revenue. Cost centers are responsible only for controlling costs, while profit centers are responsible for both generating revenue and controlling costs. Investment centers have additional responsibility for managing the assets and investments of the organization.

A Responsibility Center in Which a Manager Is Responsible Only