At Devoe Manufacturing, the vice-president of the Southern Division is responsible for the production and selling of products in fifteen states as well as securing the productive assets needed to create the product.This division is an example of which of the following responsibility centers?
A)Cost center
B)Revenue center
C)Profit center
D)Investment center

Question

Quizplus · Accepted Answer

The Southern Division is responsible for securing productive assets, which is a characteristic of an investment center. Investment centers are responsible for generating returns on invested capital, and the Southern Division's responsibilities align with this. The other options, cost center, revenue center, and profit center, do not fully capture the division's responsibilities.

At Devoe Manufacturing, the Vice-President of the Southern Division Is