A Cost Center Is a Unit of a Business That

question 129

Multiple Choice

A cost center is a unit of a business that incurs costs but does not directly generate revenues. All of the following are considered cost centers except:

• A) Accounting department.
• B) Purchasing department.
• C) Research department.
• D) Advertising department.
• E) All of these could be considered cost centers.

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Definitions:

Early Retirements

A situation where an employee chooses to retire before the customary retirement age, often incentivized by employer offerings.

Involuntary Terminations

The act of ending an employee's contract or employment against their will, often due to layoffs or disciplinary actions.

Employee Leasing

Involves an organization paying a fee to a leasing company that provides a pool of employees who are available on a temporary basis. This pool of employees usually constitutes a group or crew intended to handle all or most of the organization’s work needs in a particular area.

Contingent Workforce

A labor pool consisting of people employed by organizations on a non-permanent basis, such as freelancers, temporary contract workers, or consultants.