Cost center managers are evaluated on their efficiency in using an input-mix to:
A)produce a stipulated level of output.
B)generate a stipulated amount of revenue.
C)produce a pre-decided level of net profit.
D)generate a certain amount of return on investment.

Question

Quizplus · Accepted Answer

Cost center managers are typically evaluated on their ability to efficiently use the resources allocated to them to produce a specific level of output. This means that they are expected to use the input-mix provided to them in the most efficient way possible, to produce the desired level of output with the lowest possible resource consumption. The other options (B, C, and D) are not typically used to evaluate cost center managers, as their responsibilities generally do not include generating revenue, net profit, or return on investment.

Cost Center Managers Are Evaluated on Their Efficiency in Using