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 cost according to controllability, Explain the cost According t...

Explain the cost According to controllability: Controllable cost: this is a cost which can be inclined by the action of a specified member of an undertaking. The organization

Battle of the sexes game, Battle of the Sexes game To understand Battle...

Battle of the Sexes game To understand Battle of the Sexes game, let’s consider a story as follows: Two players (a couple) wish to go to an event together but disagree about

Determine the total labour variance, Problem: Fancy Foods Ltd uses a st...

Problem: Fancy Foods Ltd uses a standard costing system to control its material and labour costs. The standard costs for January 2007 were as follows. Standard Costs Materi

Organizing-motivation-role of management accountant, Organizing (1) It is...

Organizing (1) It is the establishment of the framework within which the required activities are to be performed and the designation of who should perform such activities. It inc

Accounting Ratios, Explain TWO limitations of using accounting ratios to as...

Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how each limitation may be improved

Cost classifications, How do the different cost classifications can assist ...

How do the different cost classifications can assist the management

Marginal costing technique, how company apply marginal costing techniques s...

how company apply marginal costing techniques show with an example

What is kaizen, What is kaizen Kaizen is the Japanese term for continuo...

What is kaizen Kaizen is the Japanese term for continuous improvement. The kaizen concept was pioneered by in Japan by Toyota as daily challenge to all its to improve their pro

Homework.., given the above data what would the breakeven in units and doll...

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

Pricing over the life cycle of a product, Q. Pricing over the life cycle of...

Q. Pricing over the life cycle of a product? The cycle begins with the invention of the new product. The innovation of a new product and its degeneration to a common product is

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