Which of the following is the primary tool used by cost centers to manage costs?
A)Return on investment
B)Budgetary control system
C)Balanced scorecard
D)Transfer pricing

Question

Quizplus · Accepted Answer

Budgetary control systems are specifically designed for cost centers to manage and control their costs effectively. It involves preparing budgets, analyzing variances and taking corrective actions to ensure that the actual costs do not exceed the budgeted costs. Return on investment and balanced scorecard are performance measurement tools, and transfer pricing is a technique used to determine the prices of internal transactions between different business units of the same organization.

Which of the Following Is the Primary Tool Used by Cost