How Is Performance Evaluated for a Cost Center

question 38

Multiple Choice

How is performance evaluated for a cost center?

• A) Actual costs incurred compared to budgeted costs.
• B) Actual segment margin compared to budgeted segment margin.
• C) Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment.
• D) None of these.

---

Definitions:

Standard Deviations

A metric that calculates the degree of spread or variability of data points relative to their average value.

Mean

The mean is the average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Deviations

Measures that express the variability or spread in a set of data from its mean, showing how much variation there is from the average.

Normal Curve

A symmetrical, bell-shaped curve representing the distribution of a set of data where most occurrences take place in the middle of the range and taper off toward either end.