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Which of the Following Is a Characteristic of a Profit

Question 7

Multiple Choice

Which of the following is a characteristic of a profit center?


A) The center's manager has control over revenues and costs.
B) The subunit has responsibility for generating revenues, controlling costs, and generating a return on assets.
C) The subunit can be evaluated using residual income.
D) The subunit can be evaluated by comparing it to other investment centers.

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