Question

managers of cost centers are evaluated on a. revenues and costs incurred in their responsibility b. center their ability to control costs in their responsibility c. center revenues, costs and the use of investment funds in their responsibility center

Answer 1

Managers of cost centres are evaluated on  their ability to control costs and provide quality service

A cost center is a part of an organization that doesn't produce profits but aids the business in some way, such as by raising service standards, which helps it accomplish other objectives. Cost center managers are not involved in any activities that directly affect revenue; instead, they are only responsible for keeping their spending within the company's budget.

The manager of a cost center has the power to incur expenses for regular business operations and activities. A cost center manager's main objective is to keep the subunit's costs under control. As a result, cost containment and control are used to evaluate a cost center manager.

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