Asked by Bennie Raymond on Jul 01, 2024
Verified
A department that incurs costs without directly generating revenues is a:
A) Service center.
B) Production center.
C) Profit center.
D) Cost center.
E) Performance center.
Service Center
A segment within an organization that provides essential support services or assistance to other departments or units within the organization.
- Detect and appreciate the tasks and liabilities within organizational configurations pertinent to accounting and finance.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
D
Explanation :
Cost center is a department or unit that is responsible for incurring costs without generating revenues or profits for the organization. The main objective of a cost center is to control expenses and ensure efficient use of resources to support the overall operations of the organization. Examples of cost centers include HR, IT, and administration departments.
Learning Objectives
- Detect and appreciate the tasks and liabilities within organizational configurations pertinent to accounting and finance.
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