Which of the following describes Cost centres?
A、units of product or service for which costs are ascertained
B、amounts of expenditure attributable to various activities
C、functions or locations for which costs are ascertained
D、a section of an organisation for which budgets are prepared and control exercised
A、units of product or service for which costs are ascertained
B、amounts of expenditure attributable to various activities
C、functions or locations for which costs are ascertained
D、a section of an organisation for which budgets are prepared and control exercised
【参考答案及解析】
Item B describes the costs of an activity or cost centre. Item A describes cost units. Item D describes budget centres. A cost centre is defined as 'a production or service location, function, activity or item of equipment for which costs are accumulated7.
Item B describes the costs of an activity or cost centre. Item A describes cost units. Item D describes budget centres. A cost centre is defined as 'a production or service location, function, activity or item of equipment for which costs are accumulated7.