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:

Richard Sennett

An American sociologist and author known for his work on the social ties and interactions within cities, and the impact of urban life on individuals in modern society.

Intimate Association

Close, personal relationships that are deeply connected to one's emotional and social identity.

Recreation

Activities done for enjoyment when one is not working, including sports, hobbies, and other leisure activities.

Leisure

Time free from the demands of work or duty, where individuals can engage in activities for enjoyment and relaxation.