A cost center is a responsibility center.

Cost Center

A department or unit within an organization that does not directly contribute to profit but incurs costs for its operation.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.

Gain insight into the role and value of residual income and return on investment (ROI) in the evaluation of investment centers.

Verified Answer

Venkata Adithya GodishalaMay 19, 2024

Final Answer :

True

Explanation :

A cost center is a type of responsibility center that is responsible for controlling costs within an organization. Other types of responsibility centers include profit centers, investment centers, and revenue centers.

Learning Objectives

Gain insight into the role and value of residual income and return on investment (ROI) in the evaluation of investment centers.

A cost center is a responsibility center.

Definitions

Learning Objectives

Learning Objectives

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