In a firm that manufactures clothing, the department that is responsible for actually assembling the garments could best be described as a(n):
A) Service department.
B) Cost center.
C) Operating or production department.
D) Department in which all of the costs incurred are direct expenses.
E) Department in which all of the costs incurred are indirect expenses.

Question

Quizplus · Accepted Answer

The department that is responsible for actually assembling the garments is an operating or production department, as it is directly involved in the manufacturing process. This department incurs both direct (such as labor and materials) and indirect (such as rent and utilities) expenses. However, it cannot be classified as a service department, cost center, or a department where all costs are solely direct or indirect expenses.

In a Firm That Manufactures Clothing, the Department That Is