Cost, revenue, profit and investment centres Flashcards
1
Q
Cost unit
A
individual unit for whihc costs can be seperatly identified
product that a company makes
2
Q
Responsibility centres
A
based on identifying individual parts of a business whcih are the responsibility of a single manager
3
Q
cost centres
A
part of a business which costs can be seperatly determined and manager is responsible for controlling costs only
e.g. warehouse
4
Q
revenue centre
A
revenue can be seperately determined and mamagwr is resposnsilbe
5
Q
profit centres
A
identifiable revneues and costs manager resposnilbe for controlling profits
6
Q
investment centres
A
manager of centre responsbile for costs revenues and level of investment in assests