What are: (a) A cost centre; (Section 17.9 .1) (b) A profit centre; (Section 17.9 .2) and
Question:
What are:
(a) A cost centre; (Section 17.9 .1)
(b) A profit centre; (Section 17.9 .2) and
(c) An investment centre? (Section 17.9 .3)
Data from section 179.1
Data from section 17.9.2
Data from section 17.9.3
Transcribed Image Text:
A cost centre is a unit of the organisation in respect of which a manager is responsible for costs under their control. A cost centre could be a location (e.g. a department) or a function (e.g. the manufacture of a product), or it could even be a production machine or group of similar machines. One essential feature of a cost centre is that it must be a homogeneous unit carrying out a single form of activity. A second essential feature is that it must correspond to an identifiable managerial responsibility. Identification of a cost centre with managerial responsibility leads to a further type of cost classification, namely controllable and non-controllable costs. Costs allocated
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Based on the provided text images here are the explanations for a cost centre a profit centre and an investment centre a A Cost Centre A cost centre i...View the full answer
Answered By
Issa Shikuku
I have vast experience of four years in academic and content writing with quality understanding of APA, MLA, Harvard and Chicago formats. I am a dedicated tutor willing to hep prepare outlines, drafts or find sources in every way possible. I strive to make sure my clients follow assignment instructions and meet the rubric criteria by undertaking extensive research to develop perfect drafts and outlines. I do this by ensuring that i am always punctual and deliver quality work.
5.00+
6+ Reviews
13+ Question Solved
Related Book For
Financial And Management Accounting An Introduction
ISBN: 9789332511200
5th Edition
Authors: Pauline Weetman
Question Posted:
Students also viewed these Business questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
-
Carol Harris, Ph.D, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
-
Reply as to whether you believe the following statements are correct (C) or incorrect (I) concerning PPS sampling. a. The size of a PPS sample is not based on the estimated variation of audited...
-
The range is completely determined by the two extreme scores in a distribution. The standard deviation, on the other hand, uses every score. a. Compute the range (choose either definition) and the...
-
DE 19-6 Classify each of Georgia-Pacific's costs as either inventoriable or period costs: a. Depreciation on the gypsum board plant. b. Purchase of lumber to be cut into boards. c. Life insurance on...
-
Apply zone and price analyses to guide the adjustment process to reflect the price paid for the controlling interest. AppendixLO1
-
A manufacturing company employs several maintenance employees. When a problem occurs with the equipment, a maintenance employee receives a description of the symptoms and is supposed to locate and...
-
Power Generation Inc. has just announced the March 1, 2022 expansion of the R.H. Saunders Generating Station in the Ottawa/St. Lawrence area. Its personnel department has been directed to determine...
-
Define a non-controllable cost. (Section 23.3 .2) Data from section 23.3.2 In planning how to report, the general principles applied will be those of respons- ibility and the separation of...
-
Suppose you have three production facilities that are polluting a river. Each emits 10 units of pollution. Their marginal cost functions for reducing emissions are, respectively, MC 1 = $3, MC 2 =...
-
Which of the following is a valid table name? a. 9NEWTABLE b. DATE9 c. NEWTABLE d. None of the above are valid table names.
-
a ) If F ( x ) = upper limit x and lower limit 8 dt , the F \' ( x ) = ? b ) If F ( x ) = upper limit 1 1 and lower limit x dt , the F \' ( x ) = ? c ) If F ( x ) = upper limit x ^ 6 and lower limit...
-
Please help me with this one can you do for me 1. the research on quantum dots. Find a resource that you think does the best job of explaining this. and provide short description of what you've...
-
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $28,000. On the date of delivery, January 2, the company paid $9,000 on the machine, with the balance on credit at...
-
An airplane has to travel a round trip Manila to Singapore and back (1485 mi apart) in a total time of 7 hours and 10 minutes. The plane from manila to Singapore is flying with a headwind of 70 mph...
-
Flexible Budget. At normal capacity, Boulder Products Corp. manufactures 10,000 trail bikes. At that level, unit variable costs for the Assembly Department are: Direct...
-
In Example 4.1-3, show that even if the sense of optimization in the primal is changed to minimization, an unrestricted primal variable always corresponds to an equality dual constraint.
-
How is use of the word consistent helpful in fraud reports?
-
Diageo, the British drinks group, looked at 19 cities when planning to establish a European business service centre. It chose Budapest for its low costs, good language skills, convenient location and...
-
Milk producers have been underestimating the real costs of production by more than 20%, according to an industry working party representing production and recording interests. Initiated by the Royal...
-
This case study shows a typical situation in which management accounting can be helpful. Read the case study now, but only attempt the discussion points after you have finished studying the chapter....
-
3. The nominal interest rate compounded monthly when your $7,000 becomes $11,700 in eight years is ________
-
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
-
Advanced Small Business Certifica Drag and Drop the highlighted items into the correct boxes depending on whether they increase or decrease Alex's stock basis. Note your answers- you'll need them for...
Study smarter with the SolutionInn App