To avoid the facility department being an overhead drain, costs can be contained by:

• A. Reducing headcount
• B. Outsourcing maintenance to contractors
• C. Setting up a chargeback system
• D. Implementing tighter approval thresholds

Answer: (C)

This question centers on cost allocation and accountability for facility services. A chargeback system internalizes the cost of facilities by charging departments for the services they actually use, such as space, maintenance, and energy. This creates clear visibility into consumption, making department managers accountable for their usage and encouraging them to plan, economize, and stay within budget. When costs are allocated to those who incur or benefit from the services, the facility function behaves more like a service with a defined cost, rather than an unchecked overhead line item, which helps prevent it from becoming an overhead drain.

Regarding the other options, simply reducing headcount can degrade service quality without addressing the underlying cost drivers. Outsourcing maintenance may shift costs to a contractor but doesn't automatically reduce total spend or improve accountability within the organization. Implementing tighter approval thresholds can limit discretionary spending but still treats facilities as overhead and doesn’t tie costs directly to actual usage or value received.