The purpose of the Data Processing Department of Haslam Corporation is to assist the various departments of the corporation with their information needs free of charge. The Data Processing Department would best be evaluated as a(n):
A) cost center.
B) revenue center.
C) profit center.
D) investment center.

Question

Quizplus · Accepted Answer

The Data Processing Department is evaluated as a cost center because it provides services to other departments without generating revenue directly. Its performance is measured by how well it manages its costs while delivering services.

The Purpose of the Data Processing Department of Haslam Corporation