A segment of an organization is referred to as a profit center if it has Authority to
Question:
A segment of an organization is referred to as a profit center if it has Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply 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 Authority to make decisions over the most significant costs of operations including the power to choose the sources of supply Authority to provide specialized support to other units within the organization Responsibility for combining the raw materials, direct labor, and other factors of production into a final output. pg865
Step by Step Answer:
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg