Exam Question
A segment of an organization is referred to as a profit center if it has
- 1. Responsibility for combining materials, labor and other factors of production into a final output
- 2. Authority to provide specialized support to other units within the organization
- 3. Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply
- 4. Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital
View Answer
Answer 4. Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital
Practice set and Exam Quiz
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