The security department for a department store chain 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 security department of a department store chain is responsible for ensuring the safety and security of the customers, employees, and merchandise. They do not generate revenue or profit, nor do they make investment decisions. Instead, they are a cost center, as they incur expenses for personnel, equipment, and training to carry out their function. Therefore, the correct answer is A) Cost center.

The Security Department for a Department Store Chain Is Likely