Question

An investment center: Multiple Choice Is a cost center for which management is able to identify the original amount invested. Is a subunit of the organization that provides services to other centers within the organization. May be either a cost center or a profit center. Is a profit center for which management is able to objectively measure the cost of the assets used in the center's operations.

Answer 1

Option D. An investment center is a profit center for which management is able to measure objectively the cost of assets used in the center's operations.

Step-by-step explanation:

An investment center is neither a cost center nor a subunit of an organization that provides services to other centers because it is profit center with extensive role of investment so first three statements are wrong.

The reason is that the investment center is responsible for the profit generated by the each separate business operations in which investment is made by the investment center and whose business operations are independent of the other business operations. So option D is correct.