The manager of a cost centre has control over:

Question

BlackTom AI · Accepted Answer

The question asks about the scope of control for the manager of a cost centre, so we must evaluate what a cost centre manager can influence.
Option 1: 'pricing decisions.' Pricing is typically a responsibility of a profit centre or a higher managerial level, since it affects revenues and overall profit. A cost centre is judged on controlling costs, not on setting prices, so this claim is inaccurate.
Option 2: 'revenues and costs.' Revenues are generally outside the remit of a cost centre manager; their primary concern is cost control. Therefore, claiming control over revenues is incorrect.
Option 3: 'costs and investment decisions.' Investment decisions involve capital budgeting and asset replacement, which are usually under the control of a profit centre or the organization’s investment committee, not a cost centre manager. Hence this option is not correct.
Option 4: 'costs only.' This aligns with the standard role of a cost centre manager, whose main objective is to manage and minimize costs within the centre, without control over revenue generation or capital investments.

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