Which of the following statements regarding cost centers is incorrect?
A) Cost centers are units within a business that incur expense but do not have responsibility for generating revenue.
B) Cost centers tend to be found at upper levels on a company's organization chart.
C) A manager of a cost center has less responsibility than a manager in an investment center.
D) Cost center managers are evaluated on their ability to control costs and keep within budget.

Question

Quizplus · Accepted Answer

Cost centers are not necessarily found at upper levels on a company's organization chart. They can be found at any level of the organization where expenses are incurred without directly generating revenue.

Which of the Following Statements Regarding Cost Centers Is Incorrect