Question

a segment of a business entity to which both revenue and costs are assigned is a
a) cost centre
b) revenue centre
c) profit centre
d) production centre ​

Answer 1

Answer:

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Answer 2

The right answer is option c:

Explanation:

c) profit centre

• Any sub-unit of an organisation to which both revenues and costs are assigned such that the sub-responsibility units can be measured is referred to as a Profit Centre.
• A profit centre is a part of a company's operations that controls both revenue and expenditures.

• A profit centre is a section or division of a firm that directly contributes to or is anticipated to contribute to the bottom line of the overall organisation.
• It is treated as a separate, self-contained firm that is accountable for its own sales and profits.