Carrier Corporation produces heating and air conditioning equipment at a number of plants throughout the United States including one in Syracuse,New York.Carrier should evaluate its Syracuse plant as:
A)A cost center.
B)An investment center.
C)A profit center (other than an investment center).
D)A committed center.

Question

Quizplus · Accepted Answer

The Syracuse plant should be evaluated as an investment center because it produces a product and generates revenue. As an investment center, it can be evaluated based on its profits and return on investment.

Carrier Corporation Produces Heating and Air Conditioning Equipment at a Number