A segment of Syntex,Inc.manufactures and sells blankets.The various models of blankets are produced in a single factory using stable technology.They are sold by the sales department,which is also located in the factory.What centre is most probably used to account for this segment?
A)a cost centre
B)a revenue centre
C)a profit centre
D)an investment centre

Question

Quizplus · Accepted Answer

This segment is likely considered a profit centre because it encompasses both the production and sales of blankets, indicating it is responsible for generating revenue and controlling costs, thus affecting the profit.

A Segment of Syntex,Inc