A department that incurs costs without generating revenues is considered a(n):Multiple choice question.cost centerasset centerprofit centerinvestment center
Question
A department that incurs costs without generating revenues is considered a(n):Multiple choice question.cost centerasset centerprofit centerinvestment center
Solution
The correct answer is "cost center". A cost center is a department that incurs costs without directly generating revenues. Examples of cost centers include the accounting department, the human resources department, or the IT department in a company. These departments do not generate revenue directly, but they incur costs to support other departments that do generate revenue.
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