The manager of Center E provides administrative activities for the other centers in the company.What type of responsibility center is Center E?
A)Cost center
B)Discretionary cost center
C)Revenue center
D)Investment center

Question

Quizplus · Accepted Answer

A discretionary cost center is involved in activities that do not directly generate revenue but support the operation of the business, such as administrative activities. Center E, which provides administrative activities for other centers, fits this description.

The Manager of Center E Provides Administrative Activities for the Other