The performance of Steve,the manager of Center B,is evaluated the end of every month,by comparing the amount spent on manufacturing overhead with the budgets prepared at the beginning of the month.What type of responsibility center is Center B?
A)Cost center
B)Discretionary cost center
C)Profit center
D)Revenue center

Question

Quizplus · Accepted Answer

The evaluation of performance based on the comparison of actual manufacturing overhead with the budgeted amount indicates that Center B is responsible for controlling costs or expenses. Therefore, Center B is a cost center.

The Performance of Steve,the Manager of Center B,is Evaluated the End