The manager of Center D designs,produces,and sells products to external parties.The manager makes both long-term and short-term decisions regarding resources.What type of responsibility center is Center D?
A)Cost center
B)Profit center
C)Revenue center
D)Investment center

Question

Quizplus · Accepted Answer

Center D is an investment center because it is responsible for making long-term and short-term decisions regarding resources, indicating that it has control over investments and assets. Profit centers are responsible for generating revenue and controlling expenses, revenue centers are responsible for generating revenue only, and cost centers are responsible for controlling costs but do not generate revenue.

The Manager of Center D Designs,produces,and Sells Products to External