A department that incurs costs, generates revenues, and is responsible for effectively using department assets is considered a(n):Multiple choice question.profit centerasset centerinvestment centercost center
Question
A department that incurs costs, generates revenues, and is responsible for effectively using department assets is considered a(n):Multiple choice question.profit centerasset centerinvestment centercost center
Solution
The correct answer is "investment center". This is because an investment center is a business unit that can utilize capital to contribute to a company's profitability. It is responsible for the generation of revenue as well as the efficient use of resources and control of costs.
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