Cost Accounting Quiz
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PERFORMANCE MEASUREMENT AND CONTROL
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TechServices Inc. operates a customer support call center that handles technical inquiries for multiple product lines. The call center manager controls staffing schedules, training programs, and service level agreements, but operates within a fixed annual budget allocated by corporate. Recently, management is considering two alternative restructuring options: Option A would allow the call center to charge product divisions $25 per call handled, with the manager gaining budget flexibility to adjust staffing based on call volume. Option B would give the call center manager authority to purchase new technology systems up to $500,000 annually and establish performance-based contracts with external service providers.
Assuming the call center currently operates as a cost center, what would be the most likely responsibility center classification under each restructuring option?
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