The Difference Between a Profit Center and an Investment Center

question 78

Multiple Choice

The difference between a profit center and an investment center is

• A) an investment center incurs costs, but does not directly generate revenues.
• B) an investment center incurs no costs but does generate revenues.
• C) an investment center is responsible for effectively using center assets.
• D) an investment center provides services to profit centers.
• E) There is no difference; investment center and profit center are synonymous.