Cost centers have well-defined links between the cost of the resources and the resulting products.

Question

Quizplus · Accepted Answer

Cost centers are used to track the costs of specific activities or departments within an organization. The costs of these activities are then allocated to the products or services that are produced by the organization. This allows managers to see how much it costs to produce each product or service, and to make decisions about how to allocate resources more efficiently.

Cost Centers Have Well-Defined Links Between the Cost of the Resources