Answer to Question #203511 in Economics for Anisha Kumar

Question

Choose one manufacturing or service firm in Fiji and identify ONE cost centre in that firm and discuss the importance of that cost centre and discuss how the manager of that centre can be evaluated.

Answer 1

If we consider a sugar factory, then one of the types of costs will be the cost of determining the quality of incoming raw materials. To carry out this control, it is necessary to organize a laboratory that will control the quality of not only the received raw materials, but also the quality of the produced raw materials and finished products at each stage of production. For high-quality management of this area, a manager with special knowledge in this industry is needed. You can evaluate the work of such a manager by ordering control tests in large certified laboratories.