A unit of an organization is referred to as a profit center if it has:
A) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply.
B) Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital.
C) Authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply.
D) Authority to provide specialized support to other units within the organization.
E) Responsibility for combining material, labor, and other factors of production into a final output.
Correct Answer:
Verified
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