- Decision-Making on the

different programs and the

needed resources for these
programs.
- Budget Allocation per
Responsibility Center.
- Expected Revenues

- Actual Cost & Revenue
Data are used to measure the
effectiveness of programs


3 Decisions;
- Revise Operating
Budget
- Adjust current
Operations
- Revise or Eliminate
program


- If the amount assigned
to a responsibility
center is significantly
influenced by the
actions within the
responsibility center,
otherwise, it is Non-
Controllable.

*Engineered Cost proper
amount can be estimated

*Discretionary Cost amount
of cost can be varied at the
discretion of the manager.

*Committed Cost Items of
cost that are inevitable
consequences of
commitments previously made