In an investment center, the manager has the responsibility for and the authority to make decisions that affect a. both costs and revenues for the department or division b. costs, revenues, and assets invested in the center c. the assets invested in the center, but not costs and revenues d. costs and assets invested in the center, but not revenues

Question

Ivan Kerr

Business

15 October, 07:54

In an investment center, the manager has the responsibility for and the authority to make decisions that affect a. both costs and revenues for the department or division b. costs, revenues, and assets invested in the center c. the assets invested in the center, but not costs and revenues d. costs and assets invested in the center, but not revenues

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Answers (1)

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Tanner Fischer · Answer 1

The answer is B.) Cost, revenue, and assets invested in the center

Explanation:

An investment center is a responsibility center in which the department manager is responsible for costs, revenues and assets for the department.

An investment center is also a business unit in a firm that can utilize capital to contribute directly to a company's profitability.

Examples of departments that make up the cost center are the human resource and marketing departments, units that falls under a profit center include the manufacturing and sales department.