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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