In a profit center, the department manager has responsibility for and the authority to make decisions that affect
A) not only costs and revenues, but also assets invested in the center
B) the assets invested in the center, but not costs and revenues
C) both costs and revenues for the department or division
D) costs and assets invested in the center, but not revenues

Question

Quizplus · Accepted Answer

In a profit center, the department manager is responsible for both costs and revenues for the department or division. They have the authority to make decisions that affect both aspects of the center's financial performance. Additionally, they may also have some responsibility for the assets invested in the center, but this is not the primary focus of a profit center.

In a Profit Center, the Department Manager Has Responsibility for and the Authority