- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
which of the following costs would be considered to be the responsibility of the manager of profit centre ?
1.direct labour
2.variable production overhead
3.imputed interest on capital invested
4.depreciation on machinerywhat is the answer and the reason please !!
Thank you !!!
1 and 2
A profit centre is not reponsible for buying non-current assets (and therefore depreciation) – that would be an investment centre.
A profit centre manager is not responsible for imputed interest (imputed means ‘pretend’ and is determined by head office – not by the manager).
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.