Which of the Following Statements Is True

Which of the following statements is true?

A) An engineered cost centre is a centre where an output can be quantitatively measured and there is a reasonably good understanding of the input / output relationship.
B) A laundry in a hotel represents a discretionary cost centre as there is no readily measurable output.
C) In a profit centre, staff are held accountable for maximising return on investment.
D) The most widely used measure in investment centres is residual income.
E) Of the four generic types of responsibility centre, profit centres encompass the greatest span of accountability.

Correct Answer:

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