A department that incurs costs without directly generating revenues is a:
A) Profit center.
B) Production center.
C) Cost center.
D) Service center.
E) Performance center.

Question

Quizplus · Accepted Answer

A cost center is a department or unit that incurs costs but does not directly generate revenue. Instead, it supports the revenue-generating activities of the organization. The other options (profit center, production center, service center, and performance center) all have a direct impact on generating revenue for the organization.

A Department That Incurs Costs Without Directly Generating Revenues Is