Multiple Choice
Which of the following accounts is considered a permanent account?
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1. Introduction to Accounting
Types of Accounting
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Which of the following business segments would NOT be considered a cost center?
A
Sales Department
B
Human Resources Department
C
Maintenance Department
D
Production Department
Verified step by step guidance1
Understand the concept of a cost center: A cost center is a department or segment within a business that incurs costs but does not directly generate revenue. Examples include departments like Human Resources, Maintenance, and Production.
Analyze the given options: Sales Department, Human Resources Department, Maintenance Department, and Production Department.
Identify the role of each department: Sales Department is responsible for generating revenue, while Human Resources, Maintenance, and Production are primarily focused on supporting operations and managing costs.
Determine which department does not fit the definition of a cost center: Since the Sales Department generates revenue, it would not be classified as a cost center.
Conclude that the Sales Department is the correct answer because it is not a cost center, unlike the other departments listed.
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