The least complex segment or area of responsibility for which costs are allocated is a(n)(CMA adapted)
A)profit center.
B)investment center.
C)contribution center.
D)cost center.
E)hybrid center.

Question

Quizplus · Accepted Answer

Cost center is the area of responsibility for which costs are allocated and it is the least complex segment. This is because the only objective of a cost center is to control costs and it does not generate revenue or profit. Cost centers are typically departments such as accounting, human resources, or IT, where the costs incurred by these departments need to be allocated to other areas of the organization that generate revenue or profit.

The Least Complex Segment or Area of Responsibility for Which