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:

Beta

A measure of a security’s or portfolio's volatility in relation to the overall market.

Fed Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, set by the Federal Reserve.

NAICS Code

A classification system used in North America to categorize businesses into industries based on their economic activities.

Gross Domestic Product

The sum of the market or monetary worth of all completed products and services generated inside a nation's borders during a particular time frame.