Which types of responsibility centers generate both revenues and costs quizlet?

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Which type of responsibility centers generate both revenues and costs?
Which type of responsibility center has control over both costs and revenue but not over the use of investment funds?
Who has the overall responsibility for managing both revenues and cost elements of a production as well as the day to day operations of the productions business?
In which of the following centers are managers responsible for controlling costs and generating revenue?

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The New Products Division of Testar Company, had operating income of $8,000,000 and operating assets of $44,800,000 during the current year. The New Products Division has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Testar has set a target return on investment (ROI) of 16% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division.
A) $672,000
B) $832,000
C) $872,000
D) $528,000

Which type of responsibility centers generate both revenues and costs?

Profit Centers. A profit center is an organizational segment in which a manager is responsible for both revenues and costs (such as a Starbucks store location).

Which type of responsibility center has control over both costs and revenue but not over the use of investment funds?

control over cost, but not revenue or the use of investment funds. A profit center manager has control over both cost and revenue. An investment center manager has control over cost and revenue and the use of investment funds. income to total sales.

Who has the overall responsibility for managing both revenues and cost elements of a production as well as the day to day operations of the productions business?

A general manager (GM) is responsible for all or part of a department's operations or the company's operations, including generating revenue and controlling costs. In small companies, the general manager may be one of the top executives.

In which of the following centers are managers responsible for controlling costs and generating revenue?

Profit Centers - Incurs costs and generates revenues. Managers are held accountable for controlling costs and making decisions that impact revenues (and thus profits). Selling departments are usually evaluated as profit centers.