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C_TFIN22_64 · Question #26

Which of the following are correct descriptions of profit centers? Note: There are 3 correct answers to this question.

The correct answer is C. Profit centers represent an area of responsibility for cost and revenues. D. Profit centers are structured in a standard hierarchy. E. Profit centers are usually structured in the hierarchy by region, function or product. See the full explanation below for the reasoning.

Question

Which of the following are correct descriptions of profit centers? Note: There are 3 correct answers to this question.

Options

  • AProfit centers are the basic organizational units of profitability analysis.
  • BProfit centers are sub units of cost centers.
  • CProfit centers represent an area of responsibility for cost and revenues.
  • DProfit centers are structured in a standard hierarchy.
  • EProfit centers are usually structured in the hierarchy by region, function or product.

How the community answered

(46 responses)
  • A
    11% (5)
  • B
    17% (8)
  • C
    72% (33)

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