The responsibility report of Alejandro Garcia,the manager of one of the divisions of an auto parts manufacturing company,includes profits as well as return on investment and residual income.Alejandro is most likely the manager of a(n)________.
A) investment center
B) profit center
C) cost center
D) revenue center

Question

Quizplus · Accepted Answer

An investment center is a type of responsibility center where the manager is responsible for not only generating profits but also for managing the assets and investments of the center. Return on investment (ROI) and residual income are both financial measures that are commonly used to evaluate the performance of investment centers. Therefore, Alejandro is most likely the manager of an investment center.

The Responsibility Report of Alejandro Garcia,the Manager of One of the Divisions