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The manager of a certain division at Alpha Manufacturing is evaluated on how efficiently the division uses equipment, buildings, and other assets to generate profits. This division is considered a(n): Multiple choice question. cost center investment center profit center asset center

Sagot :

Answer:

investment center

Explanation:

From the question we are informed about The manager of a certain division at Alpha Manufacturing who evaluated on how efficiently the division uses equipment, buildings, and other assets to generate profits. This division is considered a investment center. Investment center can be regarded as business unit in a particular organization , which is able to utilize capital in contributing directly to a profitability of the organization. Organization can evaluate the performance of an investment center by consideration of revenues it generate as regards investments.

The manager of a certain division at Alpha Manufacturing is evaluated on how efficiently the division uses equipment, buildings, and other assets to generate profits which are known as an investment center.

What is an investment center?

The investment center has the responsibility to manage the business funds and capital in a manner that creates huge profit revenues. The center monitors and controls the expenses, revenues, and assets of the business.

Therefore, it has to ensure that all resources are being optimized and are allocated effectively to generate profits.

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