The Statement That Is True in Relation to Engineered Cost

question 17

Multiple Choice

The statement that is true in relation to engineered cost centres is:

• A) Planning is more difficult in engineered cost centres than in discretionary cost centres
• B) The research and development department of an organisation is likely to be an engineered cost centre
• C) Service departments where there are repetitive activities are performed are more likely to be engineered cost centres
• D) It is difficult to link the service or product to the cost centre.

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Definitions:

Satisfaction Per Dollar

A measure of the utility or enjoyment a consumer receives from a product or service relative to its cost.

Market Entry And Exit

The process by which new competitors enter or existing firms exit a market, influencing competition and market dynamics.

Industry Size

The overall scale or breadth of a sector, often measured by the number of firms, employees, or the volume of production.

Profits And Losses

The financial gains earned or losses incurred by a business over a specified period.