O'Donnell Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as
A) a cost center.
B) a revenue center.
C) a profit center.
D) an investment center.

Question

Quizplus · Accepted Answer

Since the maintenance department is authorized to contract maintenance services to outside customers, it is generating revenue for the company. As a result, the maintenance department is considered a profit center, which is responsible for generating revenue and managing expenses to maximize profit.

O'Donnell Company Makes Computer Chips