The packaging department in a large manufacturing company would be classified as a
A)Cost center.
B)Profit center.
C)Investment center.
D)Segment.

Question

Quizplus · Accepted Answer

The packaging department is a supporting function that incurs costs in the process of packaging a product for shipping or storage. It does not generate revenue or profits for the company, and its performance is evaluated based on its ability to minimize costs while maintaining the quality and efficiency of its operations. Therefore, it is classified as a cost center.

The Packaging Department in a Large Manufacturing Company Would Be