Asked by Anny karoline souza lucena on Jul 28, 2024
Verified
A cost center is a responsibility center.
Cost Center
A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.
Responsibility Center
Any business segment whose manager has control over costs, revenues, or investments in operating assets.
- Discern the variances between profit, cost, and investment centers with respect to their roles in responsibility and evaluation of performance.
Verified Answer
ZK
Zybrea KnightJul 31, 2024
Final Answer :
True
Explanation :
A cost center is a responsibility center that incurs costs but does not generate revenue. It is responsible for managing expenses and optimizing the use of resources within the organization.
Learning Objectives
- Discern the variances between profit, cost, and investment centers with respect to their roles in responsibility and evaluation of performance.
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