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.

---

Definitions:

Target Markets

Specific groups of potential customers at whom a company aims its products and marketing efforts based on shared characteristics.

Competitors

Businesses or individuals in the same industry that vie for the same customer base or market share.

Exchange

The act of trading goods, services, or resources between parties, typically in a way that benefits both sides.

Service

Intangible activities or benefits provided to consumers, including assistance, experience, or access, that satisfy a need or want.