Rather than having profit-and-loss responsibilities, ________ are assigned a budget and manage their operations to that budget.
A) profit centers
B) cost centers
C) operation centers
D) functional centers

Question

Quizplus · Accepted Answer

Cost centers are responsible for managing their costs and expenses within an assigned budget, rather than generating profits. Profit centers, on the other hand, have profit-and-loss responsibilities and are expected to generate revenue and manage their expenses accordingly. Operation and functional centers are not commonly used terms in this context.

Rather Than Having Profit-And-Loss Responsibilities, ________ Are Assigned a Budget