The purpose of the Data Processing Department of Falena Corporation is to assist the various departments of the corporation with their information needs free of charge.The Data Processing Department would best be evaluated as a:
A)cost center.
B)revenue center.
C)profit center.
D)investment center.

Question

Quizplus · Accepted Answer

The Data Processing Department does not generate revenue for the company and provides its services for free to other departments. Therefore, it is a cost center as it primarily incurs costs without generating revenue.

The Purpose of the Data Processing Department of Falena Corporation