=+19-17 K Cost centres, profit centres, decentralisation, transfer prices OBJECTIVES 1, 2 Clearview Ltd manufactures windows with
Question:
=+19-17 K Cost centres, profit centres, decentralisation, transfer prices OBJECTIVES 1, 2 Clearview Ltd manufactures windows with wood and metal frames. Clearview Ltd has three departments: Glass, Wood and Metal.
The Glass Department makes the window glass and sends it to either the Wood or Metal Department where the glass is framed.
The window is then sold. Upper management sets the production schedules for the three departments and evaluates them on output quantity, cost variances and product quality.
Required 1 Are the three departments cost centres, revenue centres or profit centres?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
Question Posted: