Asked by Modasola Sholotan on Apr 30, 2024
Verified
Most manufacturing plants are considered cost centers because they have control over
A) sales and costs
B) fixed assets and costs
C) costs only
D) fixed assets and sales
Cost Centers
Parts of an organization that do not directly generate revenue but incur costs, such as HR and IT departments, essential for the business's operations.
Manufacturing Plants
Facilities dedicated to the production of goods, often involving significant use of machinery and automation.
Control
The power to influence or direct people's behavior or the course of events or the procedures in place to manage operations, compliance, and financial reporting.
- Understand the distinction between cost centers, profit centers, and investment centers in an organizational context.
Verified Answer
Learning Objectives
- Understand the distinction between cost centers, profit centers, and investment centers in an organizational context.
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