The Responsibility Report of Keith Parker,the Manager of One of the Divisions

question 75

Multiple Choice

The responsibility report of Keith Parker,the manager of one of the divisions of an auto parts manufacturing company,includes profits as well as return on investment and residual income.Keith is most likely the manager of a(n) ________.

• A) investment center
• B) profit center
• C) cost center
• D) revenue center

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Definitions:

Cash Outflows

Expenditures of cash by a business, including operating expenses, investment outlays, and financing payments.

Dividend

A fraction of a corporation's profits allocated to its stockholders, often as cash or more shares.

Required Return

This is the minimum return an investor expects to receive on an investment, factor in the risk involved.