Features of effective cost center framework, Cost Accounting

Assignment Help:

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.


Related Discussions:- Features of effective cost center framework

Profit volume ratio, sales to profit volume ratio for three year

sales to profit volume ratio for three year

The actual price per pound of the direct material purchsed ?, A co has a st...

A co has a standard costing system. the following are avaiable for september: actual quantity of direct materials purchased and used: 20,000 pounds Standard price of direct mater

Applications of funds, Requirement for additional Funds A business would...

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

Receivables, In most situations this will be essential to grant credit to c...

In most situations this will be essential to grant credit to customers. It may be essential either due to competition or because of the custom of trade. Though, when we grant credi

How much will alan save or lose, Hale Company makes sets of wrenches. They ...

Hale Company makes sets of wrenches. They are trying to decide whether to continue to make the case the wrenches are sold in, or to outsource it to another company. The direct mate

Objective type question, 1. The bank added another company's deposit to our...

1. The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n). a) addition to the balance per books. b) subtraction from the

Stock will be selling , Atlanta Company stock is expected to follow an expo...

Atlanta Company stock is expected to follow an exponential growth rate. The relationship between the current stock price P0, future price PT after time T, and the continuously comp

Calculate the bad debt estimation, Q. 1. The 31st December 2009 trial balan...

Q. 1. The 31st December 2009 trial balance of Anika Co. reported the following information. Dr. Cr. Allowance for Bad Debts........................... $1,300 During the year 201

Management accounting, Management Accounting It is the part of account...

Management Accounting It is the part of accounting such provides special-reason statements and reports to other persons and management inside the organization.  The informatio

Compute the break even point, Park & Morgan, a law firm, is considering ope...

Park & Morgan, a law firm, is considering opening a legal clinic for midde- and low income clients. The clinic would bill at a rate if $18 per hour. It would employ law students as

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