Which of the following departments is likely to be evaluated as a discretionary cost centre?
A)the machining department of an automotive division
B)the food products division of a large PLc
C)the personnel department of an automotive division
D)the Men's shoe department of a department store

Question

Quizplus · Accepted Answer

Departments that are not directly involved in producing or generating revenue, such as the personnel department in this case, are often evaluated as discretionary cost centres. They are considered "discretionary" because their expenses are seen as optional or variable, rather than necessary for the core operations of the business.

Which of the Following Departments Is Likely to Be Evaluated