The statement that is true in relation to engineered cost centres is:
A) Planning is more difficult in engineered cost centres than in discretionary cost centres
B) The research and development department of an organisation is likely to be an engineered cost centre
C) Service departments where there are repetitive activities are performed are more likely to be engineered cost centres
D) It is difficult to link the service or product to the cost centre.

Question

Quizplus · Accepted Answer

Engineered cost centres are typically associated with operations where there is a direct, measurable relationship between the input of resources and the output of services or products. This is often the case in service departments with repetitive activities, where inputs (like labor hours or materials) can be directly linked to outputs, making it easier to plan, control, and measure performance.

The Statement That Is True in Relation to Engineered Cost