The maintenance department at Continental Airlines is likely to be classified as a(n)
A)cost center.
B)investment center.
C)profit center.
D)revenue center.

Question

Quizplus · Accepted Answer

The maintenance department at Continental Airlines does not generate revenue directly and is not responsible for making business decisions that affect profitability. Its primary responsibility is to maintain and repair the company's aircraft and facilities, which makes it a cost center. Cost centers are typically evaluated based on their ability to control costs and operate efficiently.

The Maintenance Department at Continental Airlines Is Likely to Be