alleryStart learning →In a profit center, the manager is responsible for both revenues and:
ACosts
BCoats
CCrates
DCranes
Answer & Solution
Correct answer: A. Costs
1. A profit centre combines the two narrower centres.
2. A single manager answers for both sides of the result.
3. A profit center is a segment in which a manager is responsible for both revenues and costs.
4. A store location is the example given.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 9 'Responsibility Accounting and Decentralization', sections 9.1-9.4_
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