A cost center is a unit of a business that incurs costs but does not directly generate revenues. Which of the following would definitely not be considered a cost center?A. Accounting department. B. Purchasing department. C. Research departmentD. Advertising department. E. All of these could be considered cost centers.

E. All of these could be considered cost centers.

Explanation:

A cost center is a unit of a business that incurs costs but does not directly generate revenues. Generally, cost center in an organization is typically saddled with the responsibility of controlling and allocation of costs but not the generation of revenues like a profit center such as sales department.

Hence, the following departments would definitely be considered a cost center;

A. Accounting department.

B. Purchasing department.

C. Research department

D. Advertising department.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: