In a(n)________ center,managers are responsible for costs only.
A) profit
B) cost
C) investment
D) accounting

Question

Quizplus · Accepted Answer

In a cost center, the managers are responsible for controlling and minimizing costs within the organization. Their objective is to achieve cost efficiency and reduce expenses, rather than generating profit or making investments in new projects. Therefore, option B is the appropriate choice. Option A (profit center) refers to a business unit that generates revenue and aims to maximize profits. Option C (investment center) refers to a department that is responsible for creating value through investments and managing assets. Option D (accounting center) is not a commonly used term in management accounting.

In A(n)________ Center,managers Are Responsible for Costs Only