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) Advertising department at Hertz.
B) Accounting department at Warner Bros.
C) Research department at Microsoft.
D) Juice division at Coca Cola.
E) Purchasing department at Best Buy.

Question

Quizplus · Accepted Answer

The Juice division at Coca Cola is not a cost center because it directly generates revenue by producing and selling juice products. The other options listed are all cost centers because they incur costs for the company without directly generating revenue.

A Cost Center Is a Unit of a Business That