A legal services department would be an example of a cost center.Cost center managers have the authority to incur costs to support their areas of responsibility;corporate support functions such as legal services would fall under this category.

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A cost center is a department or function within an organization that is responsible for incurring costs to support its primary activities or other areas of the organization. Legal services, as a corporate support function, would fall under this category of cost center.

A Legal Services Department Would Be an Example of a Cost