A cost center

A) only incurs costs and does not directly generate revenues.
B) incurs costs and generates revenues.
C) is a responsibility center of a company which incurs losses.
D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit.

Cost Center

A unit within an organization that does not directly add to profit but still incurs costs, such as a department or project, which needs to be monitored for internal efficiency.

Generates Revenues

The process of bringing in income from business activities, such as sales of goods or services.

Responsibility Center

A segment or area within an organization whose managers are accountable for specified sets of activities and performance.