Economics · Management Accounting
A large diversified corporation has three distinct business units: Unit 1 manager controls all operational expenses. Unit 2 manager controls revenue generation and operating costs. Unit 3 manager controls revenue, costs, and strategic asset acquisitions. How are these units classified respectively?
- 11: Revenue Centre; 2: Profit Centre; 3: Investment Centre
- 21: Cost Centre; 2: Profit Centre; 3: Investment Centre✓
- 31: Cost Centre; 2: Revenue Centre; 3: Profit Centre
- 41: Profit Centre; 2: Cost Centre; 3: Investment Centre
Correct answer
1: Cost Centre; 2: Profit Centre; 3: Investment Centre
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