Which of the Following Statements Regarding Cost Centers Is Incorrect

question 56

Multiple Choice

Which of the following statements regarding cost centers is incorrect?

• A) Cost centers are units within a business that incur expense but do not have responsibility for generating revenue.
• B) Cost centers tend to be found at upper levels on a company's organization chart.
• C) A manager of a cost center has less responsibility than a manager in an investment center.
• D) Cost center managers are evaluated on their ability to control costs and keep within budget.

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Definitions:

Standard Deviation

A measure of the dispersion or variability within a dataset, indicating how much individual data points differ from the mean.

Numbers

Abstract symbols or concepts in mathematics that represent quantities or values.

Largest

Describes the item with the greatest size, value, or extent in a set or group of items.

Salaries

The regular payment made by employers to employees, often expressed as an annual figure before taxes and other deductions.