The convenience store owned by a national chain is likely to be classified as a(n)
A) cost centre.
B) investment centre.
C) profit centre.
D) revenue centre.

Question

Quizplus · Accepted Answer

A convenience store owned by a national chain is most likely to be classified as a profit centre since it generates revenue that covers its variable and fixed expenses, and ultimately contributes to the overall profitability of the company. A cost centre is a business unit that incurs expenses but doesn't generate revenue, an investment centre is a business unit that is responsible for generating revenue and managing investments, and a revenue centre is a business unit that generates revenue but is not responsible for managing expenses. Therefore, none of the other choices would be a suitable classification for a convenience store owned by a national chain.

The Convenience Store Owned by a National Chain Is Likely