Final answer:
An organizational unit such as a department, division, or segment is known as a responsibility center. A cost center is a type of responsibility center that manages costs and does not directly generate profits.
Step-by-step explanation:
An organizational unit such as a department, division, or segment is referred to as a responsibility center. In business, responsibility centers are parts of an organization for which individual managers have accepted authority and accountability. There are several types of responsibility centers which include revenue centers, cost centers, profit centers, and investment centers. A cost center is a division that adds to the cost of an organization, but only indirectly adds to its profit. Examples of typical cost centers are the production departments and the service departments.