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Which Of the following best identifies a profit center?

a) A new car sales division for a large auto agency. b) The information Technology Department for large consumer products company. c) A large Toy Company d) The Production Operation Department for a small Job-Order machine shop company

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Question added by Khalid Khan , Finance Manager / Chief Accountant , IDEAL ENTERPRISES LLC (Construction & Contracting)IDEAL LINK SOLUTIONS (IT SOFTWARE & HARDWARE)
Date Posted: 2014/03/10
Ajay Kumar Tiwari
by Ajay Kumar Tiwari , FP&A Manager , Capgemini Technology Services

A new car sales divsion

Muhammad Ikram Mansoor Khokhar
by Muhammad Ikram Mansoor Khokhar , Financial Planning & Analysis Teamleader , Nesma Trading Co. Ltd.

out of four options (a) is profit center, (b) & (c) are investment centers and (d) is a cost center. just a brief clarification that a production department of any business is only involved in producing goods or services, it is not responsible for selling those goods or services but it is only accountable for the cost incurred and efficient use of allocated resources as per predetermined budgets.

SREEDEVI SUNILKUMAR
by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

a) A new car sales division for a large auto agency.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

answer A  

Wasif Hussain Naqvi
by Wasif Hussain Naqvi , Finance & Accounts Manager , Premium Textile Mills Limited

D

Ammad Ahmad
by Ammad Ahmad , Senior Officer , Dawlance Electronics Pvt Ltd

D

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