A _____ center manager is evaluated on their success in generating income.Multiple choice question.profit centerinvestment centerasset centercost center
Question
A _____ center manager is evaluated on their success in generating income.
Multiple choice question.
- profit center
- investment center
- asset center
- cost center
Solution
The correct answer is profit center.
Explanation:
- A profit center manager is responsible for both revenues and costs, thus directly impacting the profitability of the center.
- An investment center is evaluated based on the return on investment, not solely on income generation.
- An asset center typically refers to the management of assets, which does not focus primarily on income.
- A cost center focuses on controlling costs rather than generating revenue.
In summary, a manager of a profit center is specifically evaluated on their ability to generate income, making "profit center" the best answer.
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