Question

A segment of Mega Inc. manufactures and sells blankets. The various models of blankets are produced in a single factory using stable technology. They are sold by the sales department, also located in the factory. The segment is most probably accounted for as a(n) _____.
a. cost center.
b. revenue center.
c. profit center.
d. investment center.
e. none of these.

Answer 1

Answer:

c.  profit center

Explanation:

Based on the information provided within the question it can be said that the segment is most probably accounted for as a profit center. This is a specialty department formed inside an organization that deals with generating revenues and profits or losses. These departments are completely monitored and controlled since they are the main driving force of the company brand.