A department that is evaluated on their success in generating income is a(n):Multiple choice question.asset centerinvestment centerprofit centercost center

To answer this multiple-choice question, we need to analyze the definitions of each type of center:

1. Asset Center: This is typically responsible for managing assets and generating returns, but it is not specifically focused on income generation.

2. Investment Center: This center is evaluated based on the return on investment (ROI) it generates, taking into account income and the investment amount. It's more focused on making effective use of capital.

3. Profit Center: This center is evaluated primarily based on its ability to generate profit, which is income minus costs. It focuses directly on sales, revenue generation, and managing expenses.

4. Cost Center: This center is evaluated based on its ability to control costs. It does not directly contribute to revenue generation but ensures that expenses are minimized.

Conclusion

Given the question "A department that is evaluated on their success in generating income is a(n):", the most appropriate answer is profit center because it directly relates to generating income through profit.

Final Answer

Profit Center