Which of the following is an example of a cost center?

A cost center is a part of an organization that does not directly generate revenue but incurs costs that are necessary for the company's operations. The human resources department is a perfect example of a cost center because its primary function is to manage employee-related activities, such as recruitment, training, and benefits administration. Although these services are essential for the overall functioning of the business, they do not directly contribute to revenue generation.

In contrast, the sales and marketing departments are typically considered profit centers because they are focused on generating sales and driving revenue. The production department, while it does incur costs, is also generally viewed as a profit center since it plays a direct role in creating products that are sold to customers. Thus, the human resources department stands out as a clear representation of a cost center within an organization.