Asked by
Diana Karely
on Nov 12, 2024Verified
Investment centers differ from profit centers in that they
A) are responsible for net income only
B) are able to invest in assets
C) have less responsibilities than cost centers and profit centers
D) are only responsible for revenues
Investment Centers
Division within a company that is treated as a separate unit for measuring its financial performance, often responsible for its revenues, expenses, and investments.
Profit Centers
Segments or departments within a company that are responsible for generating revenue and are evaluated on their profitability.
Net Income
The remaining income of a firm after deducting every expense and tax from the gross revenue.
- Distinguish between investment centers, profit centers, and cost centers.
Verified Answer
KB
Learning Objectives
- Distinguish between investment centers, profit centers, and cost centers.