A cost center manager should be evaluated by
A)Examination of actual costs against budgeted costs.
B)A review of both revenues and expenses,with a focus on operating income.
C)How well assets have been used to generate income.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

A cost center manager's primary responsibility is to manage expenses and ensure that they remain within budgeted costs. Therefore, it is appropriate to evaluate the manager's performance by examining actual costs against budgeted costs. Evaluating revenues and operating income would be more appropriate for a profit center manager, and evaluating asset utilization would be more appropriate for a capital investment manager.

A Cost Center Manager Should Be Evaluated by