How is performance evaluated for a cost center?
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 these.

Question

Quizplus · Accepted Answer

Performance for a cost center is evaluated by comparing the actual costs incurred to the budgeted costs, as cost centers are primarily responsible for controlling costs.

How Is Performance Evaluated for a Cost Center