An end user is creating a new cost center.

Comprehensive and Detailed Explanation (Paraphrased from Workday Pro HCM Core – Organizations Configuration and Setup Guide, 2023R2):

The values available in theSubtype fieldwhen creating a newCost Centerare determined by thesubtypes configured for that specific organization type. Each organization type (e.g., Company, Cost Center, Region, or Supervisory) can have one or more associated subtypes that define additional categorization or behavior.

During configuration, administrators define which subtypes are valid for each organization type. Hence, when an end user creates a Cost Center, only thesubtypes associated with the “Cost Center” organization typewill appear in the selection list.

Options A, C, and D are incorrect because subtypes arenot influenced by location, user role, or system recommendations— they are strictly defined in the configuration setup.

Reference (Paraphrased Source):

Workday Pro HCM Core – Organizations Configuration Guide (2023R2), Section: “Defining Organization Types and Subtypes.”