Business units that have significant control over revenues generated and costs incurred can be best set up as: Group of answer choicesprofit centersrevenue centersinvestment centerscost centers
Question
Business units that have significant control over revenues generated and costs incurred can be best set up as: Group of answer choicesprofit centersrevenue centersinvestment centerscost centers
Solution
Business units that have significant control over both revenues generated and costs incurred are best set up as Investment Centers. This is because investment centers are responsible for revenue, cost, and investments in assets. They have the most control and responsibility, including decisions about capital investments, which can significantly impact both revenues and costs.
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