The term "cost center" is used indiscriminately to describe centers that may or may not be assigned responsibility for the capital investment.

Question

Quizplus · Accepted Answer

A cost center specifically refers to a department or unit within an organization that does not directly add to profit but still incurs costs, and it is not typically responsible for capital investment decisions, which are usually managed at higher organizational levels or in different departments.

The Term "Cost Center" Is Used Indiscriminately to Describe Centers