Facility budgets are challenging because costs are fragmented among several cost centers.

• A. Single cost center
• B. Internal departments only
• C. Several cost centers
• D. Outsourced providers

Answer: (C)

The main idea here is that budgeting for facilities becomes more complex when costs come from multiple places within the organization. When expenses are spread across several cost centers—different departments or functional areas that each incur, track, and report their own costs—you have to forecast, accumulate, and reconcile data from multiple sources. You also need to allocate shared or interdepartmental costs and analyze variances across centers to understand the total facility spend and where overruns are happening. This fragmentation is what makes the budgeting process challenging, because it requires coordination, consistent accounting, and a clear chart of cost centers to roll up into a single facility budget.

That’s why the best choice is several cost centers. If costs were confined to a single cost center, budgeting would be simpler and easier to manage. Internal departments-only or outsourced providers can add complexity, but the core difficulty described in the statement comes from distributing costs across multiple centers that must be integrated into one budget.