Explain about cost centre, Managerial Accounting

Assignment Help:

Explain about Cost centre:

Meaning & definition: cost centre is defined as a location, person or item of equipment (or group of them) in respect which costs may be ascertained and related to the cost units for the purpose for the purpose of the cost centre. It is the smallest segment of activity or area of responsibility for which the costs are accumulated.

According to CIMA, London, "a London person, or item of equipment (or group of these) for which costs might be ascertained and used for the purpose of the control".

Therefore, a cost centre refers to a section of the business to which costs can be charged. It may be a location (a department, a sales area) an item 'of equipment (a machine, a delivery van) a person (a salesman, a machine operator) or a group of these (two automatic machines operated by the one workman). The main purpose of ascertaining the cost of a cost centre is control of the cost.

 


Related Discussions:- Explain about cost centre

Explain the funded debt to total capitalization ratio, Funded debt to total...

Funded debt to total capitalization ratio The ratio establishes a link among the long term funds raised from outsider and total long term funds available in the business. The

Accounting exam, hello do your staff help with exams ?

hello do your staff help with exams ?

Explain activity based costing versus traditional costing, Activity based c...

Activity based costing versus traditional costing Following are the main differences between activity based costing system and traditional costing system: Explain  1) Und

Multiple regression, MULTIPLE REGRESSION The least square regression eq...

MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However

Case of variable quantity-discounts structures, The case of variable quanti...

The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration:    Segment        Quantity

Financial perspective, Financial Perspective How do we produce value fo...

Financial Perspective How do we produce value for our shareholders? This perspective covers traditional measures e.g. growth, liability, shareholder value. But these are set on

#title.advance accounting research on companies., do you make assignments o...

do you make assignments on Advance Accounting subjects

Explain the break even point pricing, Break even point or B.E.P. pricing me...

Break even point or B.E.P. pricing method : Break even point is the volume of sales at which the total sale revenue of the product is equal to its total cost. In other words, it

Explain the external factors of pricing decisions, Explain the External fac...

Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd