Question

A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a (n):
A. profit center.
B. investment center.
C. contribution center.
D. cost center.
E. revenue center.

Answer 1

Answer:

The correct answer is letter "B": investment center.

Explanation:

Investment centers are units within a firm that generate their own revenue, reporting Financial Statements and Income Statements. Those benefits are eventually used in the diverse financing activities necessary for the corporation's processes. A typical example of an investment center is a department store of an entity.