Which of the following is a responsibility centre whose success is measured not only by its income, but also by relating that income to its invested capital?

Question

Quizplus · Accepted Answer

An investment centre is a responsibility centre whose success is measured not only by its income but also by relating that income to its invested capital. This means that an investment centre is responsible for both generating revenue and managing the capital invested in it. Thus, the correct option is A. Cost centres are responsible for controlling and reducing costs, profit centres are responsible for generating profits, and revenue centres are responsible for generating revenue.

Which of the Following Is a Responsibility Centre Whose Success