Final answer:
Managers of cost centers are not evaluated based on profits generated by their departments. Managers of cost centers are typically evaluated based on their ability to control costs, improve efficiency, and contribute to the overall profitability of the company.
Step-by-step explanation:
False. Managers of cost centers are not evaluated according to the profits their departments are able to generate. Cost centers are departments or units within a business that do not directly generate revenue. They are responsible for managing costs and supporting the revenue-generating departments of the organization. Managers of cost centers are typically evaluated based on their ability to control costs, improve efficiency, and contribute to the overall profitability of the company. Managers of cost centers are typically evaluated based on their ability to control and manage costs efficiently rather than the profits generated by their departments. Cost centers are organizational units within a company that are responsible for incurring costs but are not directly accountable for revenues or profitability. The goal for managers of cost centers is to manage their budgets effectively and control costs within the allocated resources.
Managers of cost centers are typically evaluated based on their ability to control and manage costs efficiently rather than the profits generated by their departments. Cost centers are organizational units within a company that are responsible for incurring costs but are not directly accountable for revenues or profitability. The goal for managers of cost centers is to manage their budgets effectively and control costs within the allocated resources. Profit centers, on the other hand, are evaluated based on both their revenues and costs, as they have the responsibility for both. Therefore, while profit centers are assessed on profitability, cost centers are primarily assessed on their ability to control costs and operate within budget constraints.