Accounting Information Systems 8th Edition by James Hall

Exercise 22

Which statement below best describes a profit center?
A) The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply
B) The authority to make decisions affecting the major determinants of profit, including the power to choose its markets, sources of supply, and significant control over the amount of invested capital
C) The authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply
D) The authority to provide specialized support to other units within the organization
E) The responsibility for combining the raw materials, direct labor, and other factors of production into a final product