A cost center for which there is a clear relation between inputs and outputs is referred to as a:
A)Discretionary cost center.
B)Budget center.
C)Engineered cost center.
D)Kaizen center.
E)None of the above.

Question

Quizplus · Accepted Answer

An engineered cost center is one where there is a clear relationship between inputs and outputs. This means that the cost center can be analyzed using an engineering approach where the inputs can be measured and controlled to determine the best outputs. Discretionary cost centers have more flexibility in spending while budget centers are responsible for maintaining budget limits. Kaizen centers focus on continuous improvement and none of the above apply to the definition given in the question.

A Cost Center for Which There Is a Clear Relation