A primary consideration in assigning a cost to a responsibility center is ________.

Question

Quizplus · Accepted Answer

The primary consideration in assigning a cost to a responsibility center is who can best control the change in that cost. This helps ensure that managers are held accountable for costs that they have the authority to manage and control within their areas of responsibility. Factors such as whether the cost is fixed or variable, direct or indirect, and where in the organizational structure the cost was incurred may also be considered, but they are secondary to the issue of control.

A Primary Consideration in Assigning a Cost to a Responsibility