A manager who is responsible for both the revenue and the costs incurred in generating a product or service is managing

Question

Quizplus · Accepted Answer

A manager responsible for both the revenue and the costs incurred is managing a profit center. Profit centers are responsible for generating revenue and controlling costs in order to maximize profits. Cost centers are responsible for controlling costs, but not generating revenue. Product centers are responsible for a specific product or service, but may not have profit responsibility. Investment centers have profit responsibility, but also have control over investments and capital expenditures.

A Manager Who Is Responsible for Both the Revenue and the Costs