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 machinery
what is the answer and the reason please !!
Thank you !!!
Ask the Tutor ACCA MA
profit centre
11y ago#11 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).
thanxx a loot sir :)
11y ago#3You are welcome :-)
Sign in to reply to this topic.