It is difficult to measure the relationship between inputs and outputs in discretionary cost centres because the organizational output is not directed related to the activities in the individual cost centre.

Question

Quizplus · Accepted Answer

Discretionary cost centres, such as research and development or marketing departments, often engage in activities where the direct impact on the organization's overall output is not easily quantifiable, making the measurement of input-output relationships challenging.

It Is Difficult to Measure the Relationship Between Inputs and Outputs