When managers are held responsible for costs and the input-output relationship is well specified,a(n)________________________ is established.
A) standard cost center
B) revenue center
C) discretionary cost center
D) asset center

Question

Quizplus · Accepted Answer

A standard cost center is a unit of responsibility in which managers are held accountable for controlling costs within specified limits. The input-output relationship is clearly defined, and managers are provided with predetermined standards for costs and inputs. This enables management to monitor performance and take corrective action when necessary, ensuring that costs are kept under control.

When Managers Are Held Responsible for Costs and the Input-Output