Which of the following is FALSE concerning profit centres and cost centres?
A)A profit centre can exist within a centralized organization.
B)A profit centre can exist within a decentralized organization.
C)A cost centre can exist within a centralized organization.
D)A cost centre can exist within a decentralized organization.
E)If a profit centre exists within a centralized organization, there cannot be any cost centres in the organization.

Question

Quizplus · Accepted Answer

This statement is false. A centralized organization can have both profit centres and cost centres. Profit centres are responsible for generating revenue, while cost centres focus on reducing expenses. In a centralized organization, cost centres may be used to support the operations of profit centres, allowing them to focus on generating revenue without having to worry about administrative or support functions.

Which of the Following Is FALSE Concerning Profit Centres and Cost