A department that is evaluated on their success in generating income is a(n):Multiple choice question.asset centercost centerprofit centerinvestment center
Question
A department that is evaluated on their success in generating income is a(n):Multiple choice question.asset centercost centerprofit centerinvestment center
Solution
The correct answer is "profit center". This is because a profit center is a part of a company that directly adds to its profits. The department is responsible for generating revenue (income) and is also responsible for the costs associated with generating that income. Therefore, its success is evaluated based on the income it generates.
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