Finance And Accounting-cost And Profit Centres Flashcards
What is a cost centre
Somewhere that spends money but does not generate profit
What is an example of a cost centre in a school
Each department is a cost centre
What is an example of a profit centre in a school?
Departments that receive part of the firms revenue
What is a profit centre
Somewhere that spends money and generates revenue
A separate profit and loss account can be drawn up
what is depreciation?
the rate at which your fixed assets decline in value over time
what is the method of calculating depreciation?
straight line method
how do you work out depreciation allowance?
original cost-residual value/expected life
what is residual value?
what you expect to get for each asset if you were to sell it at the end of it’s life
what are pressure groups?
an organisation set up to try to influence what we think about the business and it;s environment. It aims to challenge and change the behaviour of a business
what are 3 campaign tactics?
media stunts
design and place cards
petitions
for a pressure group to be successful, what 3 things can it depend on?
public support
power of a role model/image
impact of the media
what is labour turnover?
the movement of employees in and out of a business
how do you measure labour turnover?
number of leavers/average no. of employed x100
what are 3 causes of high labour turnover?
inadequate wage
low levels of motivation
employing the wrong type of employee
what are 3 costs of high labour turnover?
additional recruitment costs
lost production costs
training replacement costs
