Multiple Choice QuestionThe accounting department of a manufacturing company is a(n):Multiple choice question.asset centerprofit centercost centerinvestment center
Question
Multiple Choice QuestionThe accounting department of a manufacturing company is a(n):Multiple choice question.asset centerprofit centercost centerinvestment center
Solution
The accounting department of a manufacturing company is a(n):
Cost Center
Explanation: In a company, a cost center is a department that adds to the cost of an organization, but only indirectly adds to its profit. Accounting departments do not generate revenue, but they do incur costs to operate, hence they are considered as a cost center.
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