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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › centre
selling department is a revenue center and distribution department is a cost center.
am i right?
another question
in a factory there can be various divisions like assembling , packing,service and these divisions individually referred to as cost centers.
i wanna know is the factory itself is also a cost center. In that case a factory is a cost center while it further consists of many other cost centers too.is it so.
or
is the factory is not a department its just a location where various departments are present. So it is not a cost center. But this consist of many divisions locations or departments which incur cost and so they are cost centers.
A cost centre is wherever the company chooses to collect costs.
Usually it will be individual departments or divisions rather than the factory as a whole.