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Machine parts are assembled in a factory. One of the components used to assemble machine part component C26.
Which of the following could be an example of a cost centre in the factory?A. A unit of component C26
B. The cost per unit of machine part MP12
C. The assembly department
D. A unit of machine part MP12Do not know answer. Confused between A and C.
A cost centre is a department within a business to which costs can be allocated.
It’s a place not a thing
I have read that cost centre can be function, place, person or any machine on which cost can be accumulated.
James124 wrote:I have read that cost centre can be function, place, person or any machine on which cost can be accumulated.
Exactly same point. A cost centre can be item of equipment. I am too confused.
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