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
Period Costs Some terms are difficult to define. In one school of thought, period costs are the any costs that are not product costs. But, such a description is a stretch, beca

are eploration costs of a mining industry regarded as an asset or expense or both?

Adele Weiss manages the campus flower shop. Flowers must be ordered three days in advance from her supplier in Mexico. Advance sales are so small that Weiss has no way to estimate

Your company completed the site work for the South Pointe office complex. The costs are shown in Figure 11-3. The site concrete labor and landscaping were done by subcontractors. T

Seventeen new bathing suit stores enter the Santa Barbara market, joining the seven that already existed. As a consequence, the demand schedule facing Swim N Style (and all other s

What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be

Role of Cost Accounting in Business Management The system is a set of interdependent parts that together form a unitary whole such performs some functions. A number of sub sys

Reasons for Cost Allocation 1. To provide comparison along with externally provided services:  It helps in assessing where to continue the contact or service outsiders. 2.

Beginning inventory on March 1 consisted of 2,000  units each costing $11.20 . During March, the following was purchased for inventory: Date Purchase

In Lowe's Companies, Inc. 2012 Annual Report (Form 10-K) 1. Evaluate Lowe's investment in property, plant and equipment. Determine the following amounts as reported by Lowe's on it