Which of the following might you expect to see being used as a performance measure for a cost centre?
A) Return on investment
B) Actual business unit profit compared with budget business unit profit
C) Standard cost variances
D) All of the given answers

Question

Quizplus · Accepted Answer

Standard cost variances are often used as a performance measure for cost centres since cost centres are responsible for managing costs within their department or area. Return on investment and actual profit are typically used as performance measures for profit centres, while comparing actual and budgeted profit is a measure for a business unit as a whole.

Which of the Following Might You Expect to See Being