In a cost centre,
A)managers are expected to control costs directly under their control.
B)managers are expected to control all costs, including allocated costs from head office.
C)managers are expected to control all direct costs and the contribution margin that they provide.
D)managers are expected to control all costs and sales from their division.

Question

Quizplus · Accepted Answer

In a cost centre, managers are expected to control costs directly under their control. This includes items such as materials, labor, and overhead expenses that are directly related to the operation of their department or division. They are not responsible for controlling expenses that are allocated by head office or other departments.

In a Cost Centre