Asked by Jasmine Agosto on May 05, 2024
Verified
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.
Verified Answer
Learning Objectives
- Differentiate among cost centers, profit centers, and investment centers within organizational frameworks.
- Identify the responsibilities and performance measures of investment centers.
Related questions
A Responsibility Center in Which the Department Manager Is Responsible ...
The Balanced Scorecard Measures Four Areas of Financial and Nonfinancial ...
Tom's Tool Factory Is an Investment Center and Is Responsible ...
Most Manufacturing Plants Are Considered Cost Centers Because They Have ...
A Selling Department Is Usually Evaluated as a Profit Center