..... is a location, person or item of equipment (or group of these) for which costs may be ascertained and used for the purpose of control.

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

____ is a location, person or item of equipment (or group of these) for which costs may be ascertained and used for the purpose of control.

A	Cost centre
B	Revenue centre
C	Profit centre
D	Responsibility

Explanation:

Detailed explanation-1: -A cost centre, according to the Institute of Cost and Management Accountants (ICMA), is a location, person, or item of equipment (or a combination of these) for which costs can be determined and utilised for cost control.

Detailed explanation-2: -Answer. CIMA defines a cost centre as “a location, a person, or an item of equipment (or a group of them) in or connected with an undertaking, in relation to which costs ascertained and used for the purpose of cost control”. Cost centres are of two types-Personal and Impersonal Cost Centre.

Detailed explanation-3: -A cost center is defined as “a location, person, or item of equipment for which costs may be ascertained and used for the purpose of control.

Detailed explanation-4: -Cost centre is a person or item for which cost may be ascertained.

Detailed explanation-5: -Cost Centre is a location, person or item of equipment for which cost may be ascertained and used for the purpose of cost control.

There is 1 question to complete.