Asked by Jasmine Agosto on May 05, 2024

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Managers of what type of decentralized units have authority and responsibility for revenues, costs, and assets invested in the unit?

A) profit center
B) investment center
C) production center
D) cost center

Investment Center

A division or unit within a company for which the manager has responsibility for and authority over the unit's revenues, costs, and investments.

Decentralized Units

Subdivisions within a larger organization that operate with a degree of autonomy, often making their own decisions and managing their own operations.

Authority

Authority refers to the power or right given to an individual or organization to make decisions, direct others, and enforce obedience.

  • Differentiate among cost centers, profit centers, and investment centers within organizational frameworks.
  • Identify the responsibilities and performance measures of investment centers.
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Verified Answer

SA
Sarah AccettaMay 07, 2024
Final Answer :
B
Explanation :
Managers of investment centers have authority and responsibility for revenues, costs, and assets invested in the unit. This is because investment centers are evaluated based on their ability to generate profit and efficiently manage the assets invested in the center, encompassing a broader scope of responsibility than other types of centers.