A cost center is a unit of a business that incurs costs without directly generating revenues.All of the following are considered cost centers except:
A)Accounting department at Warner Bros.
B)Purchasing department at Best Buy.
C)Research department at Microsoft.
D)Advertising department at Hertz.
E)Juice division at Coca Cola.

Question

Quizplus · Accepted Answer

The Juice division at Coca Cola is a revenue-generating unit and therefore cannot be considered a cost center. The other departments listed, Accounting at Warner Bros., Purchasing at Best Buy, Research at Microsoft, and Advertising at Hertz, do not directly generate revenues and are commonly recognized as cost centers.

A Cost Center Is a Unit of a Business That