Which of the Following Statements Regarding Profit Centers Is Correct

question 32

Multiple Choice

Which of the following statements regarding profit centers is correct?

• A) A manager of a profit center has more responsibility than a manager of an investment center.
• B) A manager of profit center is evaluated only on his/her ability to control costs.
• C) A manager of a profit center is evaluated on his/her ability to control costs and generate revenues.
• D) A manager of a profit center is responsible for assets,liabilities,and earnings.

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Definitions:

Biases

Prejudices or predispositions toward one side of a subject or issue.

Phenomena

Observable events or occurrences that can be studied scientifically or understood through analysis.

Hypothesis

An assumption or proposition made as a basis for reasoning or research, without any assumption of its truth.

Explanation

A statement about why or how something is the case.