Question

Within a company, cost centres

Select one:

a. Require the parent company to monitor quality control

b. Are largely run by themselves and try to reduce costs by reducing quality

c. Require the parent company to monitor quality control and try to reduce costs by reducing quality

d. May try to reduce costs by reducing quality

Answer 1

A. Cost centres as departments within the company to monitor quality control and reduction in costs but not quality of the product.

Businesses need to track their revenues and costs. Cost centres are departments of business that result into costs to businesses but do not generate income flow. It can be a full department or even an individual human. The size of the cost centre as to how many people or how many departments depend upon the size of the company or firm.