A cost center is a unit of a business that incurs costs but does not directly generate revenues. All of the following are considered cost centers except:
A) Accounting department.
B) Purchasing department.
C) Research department.
D) Advertising department.
E) All of these could be considered cost centers.

Question

Quizplus · Accepted Answer

All the departments listed (Accounting, Purchasing, Research, and Advertising) can be considered cost centers because they all incur costs but do not directly generate revenues. They support the business operations indirectly.

A Cost Center Is a Unit of a Business That