A Cost Center Is a Business Segment

question 22

Multiple Choice

A cost center is a business segment:

• A)that usually evaluates employee performance by comparing the center's actual costs with target or standard costs for the amount and type of work done.
• B)in which interperiod cost comparisons can be misleading if the output level and production mix are constant.
• C)that usually includes individual stores within a department-store chain.
• D)that should be evaluated solely on its ability to control and reduce costs.