Question

Management will most likely behave the same way if a department is structured as a cost center or if the same department is structured as a profit center.

a-true
b-false

Answer 1

Management will most likely behave the same way if a department is structured as a cost center or if the same department is structured as a profit center. False.

Step-by-step explanation:

Management will most likely behave the same way if a department is structured as a cost center or if the same department is structured as a profit center. This statement is false.

A cost center is a department that incurs costs but does not directly generate profits. The main focus of a cost center is to control and minimize expenses. Management of cost centers is typically evaluated based on their ability to manage costs efficiently.

On the other hand, a profit center is a department that is responsible for generating revenue and making a profit. The main focus of a profit center is to increase sales and maximize profitability. Management of profit centers is typically evaluated based on their ability to generate profits.