Multiple Choice
The difference between a profit center and an investment center is
A) an investment center incurs costs, but does not directly generate revenues.
B) an investment center incurs no costs but does generate revenues.
C) an investment center is responsible for effectively using center assets.
D) an investment center provides services to profit centers.
E) There is no difference; investment center and profit center are synonymous.
Correct Answer:

Verified
Correct Answer:
Verified
Q73: Outdoor Sports, Inc., produces two types of
Q74: Dresden, Inc. has four departments. Information about
Q75: A single basis for allocating service department
Q76: Activity based costing can be applied to:<br>A)
Q77: A college uses advisors who work with
Q80: Precision Brackets, Co. is considering switching from
Q81: A _ incurs costs and generates revenues.
Q82: In the preparation of departmental income statements,
Q83: A responsibility accounting system:<br>A) Is designed to
Q102: How do companies decide what allocation bases