Which of the following departments would NOT be classified as a profit centre?
A)the accounting department of a large PLc
B)the automotive division of a large PLc
C)the hardware department of a department store
D)the men's shoe department of a department store

Question

Quizplus · Accepted Answer

The accounting department is a support function that doesn't generate any revenue. Profit centres are business units that generate revenue and are evaluated based on their profitability. B, C, and D are business units that generate revenue and can be evaluated based on their profitability, thus they can be classified as profit centres.

Which of the Following Departments Would NOT Be Classified as a Profit