1. To more effectively compete in a dynamic market for consumer electronics, a manufacturer of consumer electronics products has established a new department for Innovation and Refinement that reports directly to the chief operating officer (COO). The role of the new department is to develop new products and to refine existing products that keep the firm on the leading edge of innovation in the industry. A key tool of the new department is to use business analyticsa type of statistical analysis that is used to analyze market trends, consumer data, and economics forecaststo best identify the products that consumers want and the types of innovation most likely to be valued.

For the problem above I think it is a cost center and more specifically an engineered cost center, but I'm uncertain for why it is?