An operating unit of an organization is called a revenue center if it is responsible:
A) only for costs.
B) only for revenues.
C) for costs and revenues.
D) for investments in assets.

Question

Quizplus · Accepted Answer

A revenue center is a unit of an organization that is responsible only for generating revenues. Its success is measured by the amount of revenue it brings in, and it is not held responsible for costs or investments in assets. The term "cost center" is used for units that are responsible for costs.

An Operating Unit of an Organization Is Called a Revenue