Which of the following best describes a profit center?
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

Question

Quizplus · Accepted Answer

A profit center is a part of an organization with the authority to make decisions affecting the major determinants of profit, including choosing its markets and sources of supply, but without significant control over invested capital.

Which of the Following Best Describes a Profit Center