Managers of cost centers are evaluated according to the profits which their departments are able to generate.

Question

Quizplus · Accepted Answer

Managers of cost centers are not evaluated based on profits, but rather on how effectively they manage costs and resources allocated to their department. Their goal is to produce goods or services at the lowest possible cost, without compromising on quality or efficiency. Profit generation is usually the responsibility of managers of revenue centers or profit centers.

Managers of Cost Centers Are Evaluated According to the Profits