Which of the following statements regarding investment centers is incorrect?
A) A manager of an investment center is responsible for the investment of capital, but not revenues or expenses.
B) Investment centers are commonly found at the higher levels of an organization chart.
C) A manager of an investment center should be accountable for assets, liabilities, and earnings.
D) Return on investment and residual income are tools used to assess managers of an investment center.

Question

Quizplus · Accepted Answer

This statement is incorrect. A manager of an investment center is responsible for both the investment of capital and the revenues and expenses associated with that investment.

Which of the Following Statements Regarding Investment Centers Is Incorrect