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The manager of the truck maintenance department at FedEx may be in charge of a(n)

A) revenue center.

B) cost center.

C) profit center.

D) investment center.

1 Answer

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Final answer:

The manager of the truck maintenance department at FedEx may be in charge of a cost center.

Step-by-step explanation:

The manager of the truck maintenance department at FedEx may be in charge of a cost center.

A cost center is a department or division within a company that is responsible for controlling and managing costs. The manager of a cost center focuses on cost-saving measures and ensuring that expenses are kept within budget.

In the case of the truck maintenance department at FedEx, the manager would be responsible for controlling costs related to truck maintenance, such as labor, parts, and repairs. They would analyze expenses, identify areas where costs can be reduced, and implement strategies to increase efficiency and reduce costs. Cost centers are crucial as they play a significant role in a company's ability to operate efficiently by maintaining the equipment that allows the company to provide its services, similar to our example of a messenger company, where managing the cost of gasoline is vital to its operations.

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