Asked by Kayla Cohen on Jun 12, 2024

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An example of a cost center is:

A) a Holiday Inn.
B) the restaurant in a motel.
C) the administrative department in a hospital.
D) the catering department in a motel.

Cost Center

A unit or department that incurs costs but does not generate revenues.

Holiday Inn

A brand of hotels known for providing lodging and related services to travelers; part of the InterContinental Hotels Group.

Administrative Department

A division within a company or organization responsible for performing management and support duties, such as clerical work and maintaining records.

  • Understand the concept of cost centers and their role within an organization.
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Selina EllenJun 14, 2024
Final Answer :
C
Explanation :
Cost centers are departments or units within an organization that do not directly generate revenue but incur costs, such as administrative departments. The administrative department in a hospital is a classic example of a cost center, as it supports the hospital's operations but does not directly contribute to its profits.