Answered: A department that incurs costs but does…

A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b) cost center.(c) investment center.(d) limited center.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1MC

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Question

A department that incurs costs but does not generate revenue is called
a(n)

(a) profit center.
(b) cost center.
(c) investment center.
(d) limited center.

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