Final answer:
The statement provided is false; revenue centers generate income for a company, and cost centers incur costs to support the revenue-generating parts of the business.
Step-by-step explanation:
The statement that revenue centers in a company eat up available funds, while cost centers provide funds for the organization to operate in the future is false. A revenue center is a division within a business that brings in income by selling goods and services, which is crucial for the company's profitability. On the other hand, a cost center does not directly generate revenue but rather incurs costs for the company. The purpose of a cost center is usually to streamline operations and support the revenue-generating parts of the business.
It is important to understand that total cost is the sum of all expenses a firm incurs in the process of producing and selling its products. Companies can finance their various projects and operations through various means, such as investments, reinvestment of profits, loans, and by selling stock.