A divisional head is responsible for the profit or loss of the division, so the division works as a:
AProfit centre
BCost ledger
CSales outlet
DService desk
Answer & Solution
Correct answer: A. Profit centre
1. Revenues and costs can be traced to it.
2. That gives a basis for performance measurement.
3. Each division works as a profit centre.
_Source: NCERT Class 12 Business Studies Part I, Chapter 5, Organising._
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