Which type of center is responsible for both expenses and revenue?

A profit center is responsible for both expenses and revenue as its main goal is to generate profit for an organization. In a profit center, managers are evaluated based on the center's ability to produce income, meaning they have control over both the income generated and the costs incurred in the process. This dual responsibility motivates managers to optimize operations to enhance profitability.

In contrast, a cost center focuses solely on managing costs without a direct impact on revenue generation. Managers in a cost center are evaluated on their ability to control expenses rather than on profit generation. A revenue center, on the other hand, is accountable only for generating revenue and does not have responsibility for managing costs. Lastly, an expense center is primarily concerned with spending and managing costs, without revenue generation being a factor. Therefore, the attributes of a profit center clearly align with the question regarding responsibility for both expenses and revenue.