A manager is responsible for all costs of producing product X but does not set the selling price. This means the manager is responsible for a cost centre.

Question

Quizplus · Accepted Answer

A cost centre is an organizational unit, department, or team for which costs are recorded and managed, but which does not generate revenue directly. In this scenario, the manager is responsible for controlling the costs of producing product X, which falls under the category of a cost centre. The fact that the manager does not set the selling price does not change the fact that they are responsible for managing the costs of production.

A Manager Is Responsible for All Costs of Producing Product