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When Responsibility Centers Are Treated as Profit Centers

Question 30

Multiple Choice

When responsibility centers are treated as profit centers:


A) the segment manager has responsibility for pricing and product selection, but not for purchasing and promotion.
B) the corporate office makes most of the operating and pricing decisions.
C) the information technology group of a manufacturing firm would typically be treated as a profit center.
D) there are usually problems associated with assigning jointly earned revenues.

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