Carrier Corporation's Syracuse plant is organized into Air Conditioning and Heating Products divisions. The management of the Syracuse plant should evaluate the Heating Products division as:

Question

Quizplus · Accepted Answer

The Heating Products division can be evaluated as a standalone profit center as it is primarily responsible for generating revenue and covering its own costs. It does not seem to involve any significant long-term investments, so it is not an investment center. The division is likely responsible for making decisions and taking actions that impact its financial results, so it can also be classified as a responsibility center.

Carrier Corporation's Syracuse Plant Is Organized into Air Conditioning and Heating