For production and support departments, a method of implementing cost centers that is output-oriented is the:

Question

Quizplus · Accepted Answer

The engineered-cost method of implementing cost centers is output-oriented and involves analyzing the production process to identify the cost of each activity or output. This method helps in linking the cost incurred with the output or results. Therefore, it is the best choice for implementing cost centers for production and support departments. The other methods mentioned, such as the budget slack method, cost shifting method, outsourcing method, and discretionary-cost method, do not focus on output and may not be suitable for these departments.

For Production and Support Departments, a Method of Implementing Cost