The kind of responsibility center that would be evaluated by comparing income on assets to the amount of assets invested is:
A) An investment center.
B) An asset center.
C) A cost center.
D) A profit center.

Question

Quizplus · Accepted Answer

An investment center is responsible for generating income on the assets invested. Evaluating the income on assets to the amount of assets invested is a common method of determining the effectiveness and efficiency of the investment center's operations. Therefore, option A is the best choice.

The Kind of Responsibility Center That Would Be Evaluated by Comparing