The Statement That Is True in Relation to Engineering Cost

question 12

Multiple Choice

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

• A) Planning is more difficult in engineering cost centres than in discretionary cost centres
• B) The research and development department of an organisation is likely to be an engineering cost centre
• C) In a manufacturing firm departments where standard products are produced are likely to be engineering cost centres
• D) All of the statements are true

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Definitions:

Relationship and Image Costs

Relationship and Image Costs entail the expenses associated with building and maintaining relationships with stakeholders and the cost of developing and preserving a company's public image.

Conventional Environmental Costs

Traditional costs associated with environmental management, including prevention, detection, and remediation of environmental damage.

Hidden Environmental Costs

Costs related to environmental damage that are not immediately apparent or directly billed but have long-term financial impacts.

Environmental Appraisal Costs

Expenses associated with assessing the environmental impact of a project or operation, including compliance with regulations.