Suboptimization occurs when a manager of a cost center focuses on the goals of the cost center rather than on the goals of the organization as a whole.

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Suboptimization happens when a manager becomes too focused on the goals of their individual cost center and fails to consider the impact of their decisions on the organization as a whole. This can often result in a decrease in overall performance and efficiency.

Suboptimization Occurs When a Manager of a Cost Center Focuses