A manager, who is responsible for the both cost and revenues belong to the department of
Correct answer: C. profit center
- A. cost center
- B. revenue center
- C. profit center
- D. investment center
Explanation
A profit center manager controls both revenues and costs, so the department's profit can be evaluated. A cost center manager controls costs only, while an investment center also controls invested assets.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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