Robert Gilligan is the manager of the golf cart production division of the John Fleer Company. The golf cart production division is recognized in the company's organization as a cost center. Of the following budgetary items, which would not be among Mr. Gilligan's responsibilities?
A) Raw materials price variances.
B) Sales prices of golf carts to Fleer's wholesale distributors.
C) Direct labor costs of the golf cart production division.
D) Costs to rework defective golf carts.

Question

Quizplus · Accepted Answer

Since the golf cart production division is a cost center, Robert Gilligan's responsibilities would focus on managing and controlling costs, not on setting sales prices. Sales prices are typically determined by the sales or marketing departments or higher-level management.

Robert Gilligan Is the Manager of the Golf Cart Production