What is the best description listed below of a discretionary cost centre?
A) a cost centre with defined relationships between effort and employee pay
B) a cost centre that allows employees to define the centre's goals using their own discretion
C) a cost centre that does not have clearly defined relationships between effort and accomplishments
D) a cost centre that designates ten percent of its budgeted costs toward building employee morale.

Question

Quizplus · Accepted Answer

Discretionary cost centres are typically those where the cost cannot be directly attributed to a specific product or service. They do not have clearly defined relationships between effort and accomplishments, unlike other types of cost centres such as production cost centres where the cost is directly tied to the output. Examples of discretionary cost centres include marketing, human resources, and research and development.

What Is the Best Description Listed Below of a Discretionary