A manager of a cost center is evaluated mainly on
A) the profit that the center generates.
B) his or her ability to control costs.
C) the amount of investment it takes to support the cost center.
D) the amount of revenue that can be generated.

Question

Quizplus · Accepted Answer

A manager of a cost center is responsible for managing the costs associated with that particular center. Therefore, their evaluation is mainly based on their ability to control costs and ensure that the budget is followed. The profit generated or revenue earned may not necessarily be the primary concern for a cost center manager, as their primary goal is to manage expenses effectively. The amount of investment required to support the cost center may also be a consideration, but it should not be the main basis for evaluation.

A Manager of a Cost Center Is Evaluated Mainly on