What Is a Profit Centre

question 93

Multiple Choice

What is a profit centre?

• A)A division of a company that has never incurred a loss
• B)A responsibility centre that incurs costs and generates revenues
• C)A centre evaluated by the rate of return earned on the assets allocated to the centre
• D)A division of the company that has fewer costs than the other divisions

---

Definitions:

Proposition

A claim or proclamation that embodies an assessment or viewpoint, potentially valid or invalid.

Equivocation

The misleading use of a word with more than one meaning or sense, often intentionally, to confuse or deceive.

Sugar

A sweet-flavored substance derived primarily from sugarcane and sugar beets, used as a sweetener in food and beverages.

Equivocation

The deceptive application of a word that has multiple meanings or senses.