Question

Which of the following business segments would not be considered a cost center? Manufacturing facilities Accounting department Retail outlet Personnel department

Answer 1

The answer is Retail outlet

Step-by-step explanation:

Cost center is a function is an organization that does not directly add to the profit of the organization but rather add to the cost of the organization. This is unlike profit center that directly add to the profit of the company.

Examples of cost center are legal department, accounting department.

Retail outlet is not a cost center because it involves the purchase and sales of inventories. So it directly adds to the profit of an organization.