When evaluating the performance of a cost center, the appropriate measurement technique would be:
A)actual costs incurred compared to budgeted costs.
B)actual segment margin compared to budgeted segment margin.
C)comparison of actual and budgeted return on investment (ROI)based on segment margin and assets controlled by the segment.
D)None of the answers are correct.

Question

Quizplus · Accepted Answer

A cost center is evaluated based on its ability to control costs, so comparing actual costs incurred to budgeted costs is the appropriate measurement technique.

When Evaluating the Performance of a Cost Center, the Appropriate