A corporate accounting department would most often be considered a
A) Cost centre, because it is typically a high cost operation
B) Cost centre, because its costs can be controlled by upper management
C) Revenue centre, if accountants have input in pricing decisions
D) Cost centre, because it is a support service

Question

Quizplus · Accepted Answer

A corporate accounting department would most likely be considered a cost centre because it is a support service that incurs costs but does not directly generate revenue. Its expenses would be allocated to other departments or cost centres within the organization. Upper management may control its costs, but that does not change its status as a cost centre. Additionally, while accountants may have input in pricing decisions, this alone would not make the accounting department a revenue centre.

A Corporate Accounting Department Would Most Often Be Considered a