The manager of Center D designs, produces, and sells products to external parties. The manager makes both long-term and short-term decisions. What type of responsibility center is Center D?
A) Cost center
B) Profit center
C) Revenue center
D) Investment center

Question

Quizplus · Accepted Answer

Center D is an investment center as it makes both long-term and short-term decisions regarding designing, producing, and selling products to external parties, and is responsible for generating income as well as managing its assets and investments.

The Manager of Center D Designs, Produces, and Sells Products