A cost center is a responsibility center in which a manager is accountable for costs ONLY.

Question

Quizplus · Accepted Answer

The statement is correct. A cost center is an organizational unit or department where the manager is responsible for managing and controlling costs. Their main objective is to maintain their department's expenditures within the budget allocated to it. The performance of cost centers is evaluated based on their ability to contain and reduce costs while maintaining a certain level of output or service quality.

A Cost Center Is a Responsibility Center in Which a Manager