Features of effective cost center framework, Cost Accounting

Features of Effective Cost Center Framework

During the establishing cost centers, an organization must consider the given points as:

a) Clear definition about the cost center boundaries. It should ensure such there's no overlapping of the boundaries defined in two (2) or more centers and no gaps whereas several aspect of the business that incurs cost is not have in a cost center.

b) A clear link along with the manager responsible so like to hold someone responsible for the costs incurred in a cost centre.

c) Costs must be analyzed into clearly defined categories in order to ensure such planned and genuine expenditure may be analyzed in the similar way.

d) The cost centers must enable the efficient and effective planning; control and directing of the organization's activities, thereby enabling it get its objectives.

Posted Date: 2/5/2013 2:37:45 AM | Location : United States







Related Discussions:- Features of effective cost center framework, Assignment Help, Ask Question on Features of effective cost center framework, Get Answer, Expert's Help, Features of effective cost center framework Discussions

Write discussion on Features of effective cost center framework
Your posts are moderated
Related Questions
You are thinking of investing in one of two corporations, both in the same industry, the XYZ Corporation or the ABC Corporation. Selected data follows: Sales data for the year e

what is planning and what part of this activity would you describe as planning in the situasion above

Automotive Products  (AP)  designs, manufactures,  and  sells  automotive  parts.  It  has  3 main operating departments: design, engineering, and production.  1.Design  ñ  the

Question Roseville, Ltd., sells one of its products for $500 each. Sales volume averages 1,000 units per year. Recently, its main competitor priced their competing product at 1

explain the practical application of differential costing with the help of suitable example.

annual usage rs 160000@ 40 per unit, cost of placing and receiving one order rs 200:annual carrying cost ; 25% of inventory value

One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it

Requirement for additional Funds A business would require additional capital for two purposes: 1. Financing additional fixed assets, and

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pro

On January 1, 2012, a machine was purchased for $197,100. The machine has an estimated salvage value of $13,140 and an estimated useful life of 5 years. The machine can operate for