Which of the following would be considered a profit center?
A) A company's accounting department
B) A company's sales department
C) A company's product line
D) A company's operating divisions

Question

Quizplus · Accepted Answer

A profit center is a specific department, product line or operating division within a company that generates revenue and profit. While accounting and sales departments may contribute to overall profitability, they are not typically considered profit centers on their own. Operating divisions, on the other hand, may be considered profit centers if they have a level of financial autonomy and responsibility for generating revenue and profit. However, the best answer in this case is choice C, a company's product line, as this is a specific area of the business that is focused on generating revenue and profit through the sale of specific products or services.

Which of the Following Would Be Considered a Profit Center