Answer :
A manufacturer's raw-material purchasing department would likely be classified as a: Cost center
What do you mean cost center?
A cost center is a department or function within an organization that does not directly add to profit but still costs the organization money to operate. Cost centers only contribute to a company's profitability indirectly, unlike a profit center, which contributes to profitability directly through its actions.
What is cost center and its types?
There are two main types of cost centres: Production cost centres, where the products are manufactured or processed. Example of this is an assembly area. Service cost centres, where services are provided to other cost centres. Example of this is the personnel department or the canteen.
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