alleryStart learning →An investment center holds its manager accountable for profits and for the:
AInvolved committee
BInvested capital
CInvited customers
DInverted schedule
Answer & Solution
Correct answer: B. Invested capital
1. An investment centre is the broadest responsibility centre.
2. Its manager answers for more than the profit figure alone.
3. The manager is accountable for profits and the invested capital used by the segment.
4. So capital as well as profit is on the manager's account.
_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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