A manufacturer's raw-material purchasing department would likely be classiﬁed as a:
A)cost center.
B)revenue center.
C)proﬁt center.
D)investment center.
E)contribution center.

Question

Quizplus · Accepted Answer

A raw-material purchasing department would be responsible for purchasing materials needed for production and is not directly involved in generating revenue or profits, hence it is classified as a cost center. The department's primary focus is on minimizing costs and increasing efficiency in the procurement process.

A Manufacturer's Raw-Material Purchasing Department Would Likely Be Classiﬁed as A