The Difference Between a Profit Center and an Investment Center

question 139

Multiple Choice

The difference between a profit center and an investment center is

• A)an investment center incurs costs,but does not directly generate revenues.
• B)an investment center incurs no costs but does generate revenues.
• C)an investment center is responsible for investments made in operating assets.
• D)an investment center provides services to profit centers.
• E)There is no difference;investment center and profit center are synonymous.

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Definitions:

Federal Government

The national government of a federal country, which shares sovereignty with the sub-national governments (such as states or provinces) and usually has powers specifically delegated to it by a constitution.

Production Costs

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overheads.

Wealthiest Counties

Refers to regions within a country that have the highest levels of income, wealth, and economic production.

Washington, D.C.

The capital of the United States, known for housing the federal government's three branches and significant national landmarks and museums.