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Teresa's Taco Co. had the following results during the most recent year: Sales $500,000; Residual income $5,000; investment turnover 2.5; and a required rate of return of 15%.
-A business segment that has responsibility for both revenues and expenses is called a(n)
A) Administrative center
B) Investment center
C) Profit center
D) Revenue center

Question

Quizplus · Accepted Answer

A profit center is responsible for both revenues and expenses, unlike an investment center which also handles investments and asset management.

Use the Following Information for the Next 4 Questions