Question

In a cost center a manager is responsible for investments, revenues, and costs

a-true
b-false

Answer 1

In a cost center, a manager is responsible for investments, revenues, and costs, and in this case, the center should continue in business as it is generating a profit.

Step-by-step explanation:

In a cost center, a manager is responsible for investments, revenues, and costs. This statement is true.

Cost centers are a specific type of organizational unit in a business that are responsible for controlling and tracking costs. The manager of a cost center has the authority and responsibility to make investment decisions, monitor revenues, and manage costs within the center.

In this particular case, the center earns revenues of $20,000 and variable costs are $15,000. Since the revenues exceed the variable costs, the center should continue in business as it is generating a profit.