A segment of a business responsible for costs and revenue as well as having the ability to make investment decisions is referred to as:

Multiple Choice

• a cost centre.

• an investment centre.

• a profit centre.

• residual income.

An individual unit within an organization whose manager has the responsibility to carry out its activities is known as a(n):

Multiple Choice

• profit centre

• segment

• responsibility centre

• investment centre

 

A profit centre manager is responsible for generating revenue, but is not responsible for controlling costs.

True OR False

 

A segment of a business responsible for both revenues and costs would be referred to as:

Multiple Choice

• a cost centre.

• an investment centre.

• a profit centre.

• residual income.