Question

A corporate accounting department would most often be considered a: A. Cost center, because it is a support service B. Cost center, because its costs can be controlled by upper management C. Revenue center, if accountants have input in pricing decisions D. Cost center, because it is typically a high cost operation

Answer 1

The correct option is A,as it is a support service

Step-by-step explanation:

A corporate accounting department is a cost center as it is support service department.

Since corporate accounting department does not generate revenue on its own ,hence it is not revenue center. Ordinarily, a revenue center is the one that has control over its revenue and costs.

A typical cost center has control over its costs as the corporate accounting department can decide how many employees it should have but lack of revenue generating activity makes it a cost center