Q1038
When is a business unit known to be a profit centre?
A.
If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control
B.
If its management is evaluated not only on revenues and expenses, but also on asset investment
C.
If its management is compensated based on the level of profitability
D.
If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply
AnswerAnswer: Option D
Solution
Answer: Option D
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