Cost, revenue, profit and investment centres

Question 1

Cost unit

Answer 1

individual unit for whihc costs can be seperatly identified
product that a company makes

Question 2

Responsibility centres

Answer 2

based on identifying individual parts of a business whcih are the responsibility of a single manager

Question 3

cost centres

Answer 3

part of a business which costs can be seperatly determined and manager is responsible for controlling costs only
e.g. warehouse

Question 4

revenue centre

Answer 4

revenue can be seperately determined and mamagwr is resposnsilbe

Question 5

profit centres

Answer 5

identifiable revneues and costs manager resposnilbe for controlling profits

Question 6

investment centres

Answer 6

manager of centre responsbile for costs revenues and level of investment in assests