Fill in the blank with the phrase that best completes the sentence.
-The maintenance department at the local museum is a(n) ________.
A)responsibility center
B)cost center
C)investment center
D)revenue center
E)profit center

Question

Quizplus · Accepted Answer

The maintenance department is classified as a cost center because its primary function is to ensure the preservation and upkeep of the museum facilities and exhibits, which is necessary but does not generate revenue or profit for the organization. Responsibility centers are typically designated for departments or individuals responsible for specific functions, investment centers are responsible for managing investments or capital, revenue centers generate revenue for the organization, and profit centers generate revenue and also have control over their expenses.

Fill in the Blank with the Phrase That Best Completes