The manager of Center B produces a product that is not sold to an external party. What type of responsibility center is Center B?
A) Cost center
B) Discretionary cost center
C) Profit center
D) Revenue center

Question

Quizplus · Accepted Answer

Center B is a cost center because it produces a product that is not sold externally, meaning it does not generate revenue directly. Its performance is evaluated based on cost control rather than profit generation.

The Manager of Center B Produces a Product That Is