Profit Corp. has a subunit classified as a cost center that supports other parts of the firm but has reported costs higher than what the corporate office would like to see.  Thus, the manager of this subunit is under pressure to cut operating costs without hurting the perceived quality of services provided.  What general recommendations could you give to the manager of this cost center to achieve that goal?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 2CMA
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Profit Corp. has a subunit classified as a cost center that supports other parts of the firm but has reported costs higher than what the corporate office would like to see.  Thus, the manager of this subunit is under pressure to cut operating costs without hurting the perceived quality of services provided.  What general recommendations could you give to the manager of this cost center to achieve that goal?

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