A cost center
A) only incurs costs and does not directly generate revenues.
B) incurs costs and generates revenues.
C) is a responsibility center of a company which incurs losses.
D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit.

Question

Quizplus · Accepted Answer

A cost center only incurs costs and does not directly generate revenues. Its purpose is to support other departments or operations within the organization.

A Cost Center