A subunit that has responsibility for controlling costs, but does not have responsibility for generating revenue is a(n)
A)investment center.
B)cost center.
C)profit center.
D)value added center.

Question

Quizplus · Accepted Answer

A cost center is a subunit that is responsible for controlling costs but not generating revenue. Investment, profit, and value-added centers are all subunits that have responsibility for generating revenue.

A Subunit That Has Responsibility for Controlling Costs, but Does