An investment center:
A)Is a profit center for which management is able to objectively measure the cost of the assets used in the center's operations.
B)Is a cost center for which management is able to identify the original amount invested.
C)May be either a cost center or a profit center.
D)Is a subunit of the organization that provides services to other centers within the organization.

Question

Quizplus · Accepted Answer

An investment center is a profit center where management can objectively measure the cost of the assets used in the center's operations. This implies that the center is responsible for earning revenue and managing the assets or investments that the organization has made in it, which can be objectively evaluated by management.

An Investment Center