BE17.1 (LO 2), C A convenience store just down the block has the following divisions within the store. Pharmacy Grocery Greeting cards Photo Household Beauty For each division, identify whether it is a cost center, revenue center, profit center, or investment center. There are checkouts in the pharmacy and photo divisions, so managers in those areas can track their revenue. There are general checkouts by the door for all other products. Assume that asset purchases can only be made by the two owners. State any further clarifying assumptions, if needed, to make these classifications. Classify business units as responsibility centers. Answer: Division - Classification Pharmacy - Profit Center Grocery - Cost Center Greeting Cards - Cost Center Photo - Profit Center Household - Cost Center Beauty - Cost Center The pharmacy has its own checkout system for tracking sales and expenses. On the other hand, the grocery and greeting card departments use a general checkout that only records costs. The photo department has its checkout for both sales and expenses. However, the household and beauty departments don't have separate checkout systems, so their costs are included in the overall store tracking. When we talk about buying assets, the owners make the decisions. No department can truly function as an investment center. If a department doesn't track its revenue, like if there aren't individual sales, it's called a cost center. On the other hand, if a de