A cost centre in which it is difficult to identify the relationship between inputs and outputs is known as a:
A) Engineered cost centre
B) Committed cost centre
C) Discretionary cost centre
D) Individual cost centre

Question

Quizplus · Accepted Answer

Discretionary cost centres are those where it is not easy to establish a direct relationship between inputs and outputs, often because the outputs are not directly measurable in the same way as inputs. This contrasts with engineered cost centres, where such relationships are typically clear and measurable.

A Cost Centre in Which It Is Difficult to Identify