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متابعة

Which Of the following best identifies a profit center?

a) A new car sales division for a large auto agency. b) The information Technology Department for large consumer products company. c) A large Toy Company d) The Production Operation Department for a small Job-Order machine shop company

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تم إضافة السؤال من قبل Khalid Khan , Finance Manager / Chief Accountant , IDEAL ENTERPRISES LLC (Construction & Contracting)IDEAL LINK SOLUTIONS (IT SOFTWARE & HARDWARE)
تاريخ النشر: 2014/03/10
Ajay Kumar Tiwari
من قبل Ajay Kumar Tiwari , FP&A Manager , Capgemini Technology Services

A new car sales divsion

SREEDEVI SUNILKUMAR
من قبل SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

a) A new car sales division for a large auto agency.

Muhammad Ikram Mansoor Khokhar
من قبل Muhammad Ikram Mansoor Khokhar , Financial Planning & Analysis Teamleader , Nesma Trading Co. Ltd.

out of four options (a) is profit center, (b) & (c) are investment centers and (d) is a cost center. just a brief clarification that a production department of any business is only involved in producing goods or services, it is not responsible for selling those goods or services but it is only accountable for the cost incurred and efficient use of allocated resources as per predetermined budgets.

FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

answer A  

Wasif Hussain Naqvi
من قبل Wasif Hussain Naqvi , Finance & Accounts Manager , Premium Textile Mills Limited

D

Ayman Ezzedine
من قبل Ayman Ezzedine , CPA|Financial Consultant/analyst|Senior Audit Manager , Self Employed

Answer D since the definition of a profit center is that it's money flows (incomes and expenses) shall be well identified in order to determine the profit.

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