A cost center
A)Records total costs of production
B)Is rewarded for increasing the costs of producing a specified output
C)Is rewarded for decreasing the costs of producing a specified output
D)None of the above

Question

​A cost center
A)​Records total costs of production
B)Is rewarded for increasing the costs of producing a specified output
C)Is rewarded for decreasing the costs of producing a specified output
D)​None of the above

Quizplus · Accepted Answer

A cost center is a department or unit within an organization that is responsible for incurring costs but does not generate revenue directly. The cost center is responsible for decreasing the costs of producing a specified output, not increasing them. Therefore, option C is the correct answer. Options A and B are incorrect. None of the above is not the correct answer, as option C is correct.

​A Cost Center

A Cost Center