A cost center is a subunit
A) In which managers are evaluated on their ability to generate revenues
B) In which managers are evaluated on their ability to keep costs and expenses on budget
C) In which managers are evaluated on their ability to generate profits
D) Both A and B

Question

Quizplus · Accepted Answer

A cost center is a subunit where managers are evaluated based on their ability to control costs and expenses, not on revenue generation or profit making.

A Cost Center Is a Subunit