If a business activity qualifies as a profit center,it cannot also qualify as an investment center.

Question

Quizplus · Accepted Answer

A business activity can qualify as both a profit center and an investment center. A profit center is a branch, division, or unit that generates revenue and is responsible for its own costs and profits. An investment center is a component of a company that is responsible for both generating income and managing investments. Therefore, a business activity can be both a profit center and an investment center if it generates revenue, incurs costs, and is responsible for investments.

If a Business Activity Qualifies as a Profit Center,it Cannot