The manager of a cost centre has control over:

Question

BlackTom AI · Accepted Answer

To start, we’re examining what a cost centre manager can directly influence within an organization.
Option 1: costs only. This is correct because a cost centre is evaluated primarily on controlling and minimizing costs; the manager is responsible for cost containment and efficiency, not for generating revenue or making capital investments.
Option 2: revenues and costs. This is incorrect since revenue decisions typically fall under profit centres or investment/finance roles; a cost centre manager does not have direct control over pricing or sales strategies.
Option 3: costs and investment decisions. This is false because investment decisions involve capital budgeting and asset deployment, which are typically beyond the remit of a cost centre manager and belong to higher-level management or a different unit like a investment or project management function.
Option 4: pricing decisions. This is inaccurate because pricing is generally the domain of revenue management, sales, or top management strategy; a cost centre manager does not set prices as part of cost control obligations.
In summary, the defining scope of a cost centre manager is to monitor and control costs, while other options reference domains (revenue, investments, pricing) that lie outside a cost centre’s typical control.

BACC012 Week 10: Practice Quiz

The manager of a cost centre has control over:

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