Asked by Jahmorai Thomas on Jul 20, 2024
Verified
Which of the following statements is true in regards to a profit center?
A) A profit center incurs costs.
B) A profit center does not generate revenues.
C) A profit center generates revenue.
D) Both A and C
Profit Center
A branch or division of a company that is directly responsible for generating its portion of the organization's overall profit.
Generates Revenue
The process or activities that result in income being brought into a company, such as sales of goods or provision of services.
Incurs Costs
To incur costs means to recognize or accumulate expenses through activities or operations, leading to a reduction in profits.
- Outline the differences among cost centers, profit centers, and revenue centers.
Verified Answer
Learning Objectives
- Outline the differences among cost centers, profit centers, and revenue centers.
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