Which of the Following Best Describes the Manager of a Profit

question 46

Multiple Choice

Which of the following best describes the manager of a profit center?

• A) The manager is only responsible for controlling costs.
• B) The manager is responsible for generating profits and efficiently managing the center's invested capital.
• C) The manager is only responsible for generating revenues.
• D) The manager is responsible for generating revenues and controlling costs.

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Definitions:

Direct Materials

Raw materials directly used in the manufacturing of a product, which are easily traceable to the finished product.

Incremental Profit

The additional profit that is generated by undertaking a particular action, such as producing an additional unit of product.

Organic Milk

Milk produced by livestock that has been fed organic feed, without the use of antibiotics or growth hormones, and typically adheres to specific standards for organic farming.

Pasteurization

A heat-treatment process used to kill harmful bacteria in food and beverages, such as milk, without significantly affecting their taste and nutritional value.