=+19-17 K Cost centres, profit centres, decentralisation, transfer prices OBJECTIVES 1, 2 Clearview Ltd manufactures windows with

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=+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?

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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

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