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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › centre

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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  • November 5, 2016 at 7:45 am #347521
    ryan32
    Member
    • Topics: 35
    • Replies: 64
    • ☆☆

    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.

    November 5, 2016 at 8:28 am #347528
    ryan32
    Member
    • Topics: 35
    • Replies: 64
    • ☆☆

    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.

    November 5, 2016 at 8:59 am #347539
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54738
    • ☆☆☆☆☆

    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.

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