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