Question

A cost centre is a
a) location for which cost is incurred
b) an organisation
c) a unit of cost
d) profit centre ​

Answer 1

Answer:

is a unit of cost

thank you

Answer 2

The correct answer is option (c) a unit of cost.

Explanation:

• A cost centre is a unit of cost.
• A cost centre is defined as a function or department within a company which is not directly going to generate revenues and profits to the company but is still incurring expenses to the company for its operations.
• The contributions made by the cost centres in terms of profits is indirect.
• Managers of cost centers, such as human resources and accounting departments are responsible for keeping their costs in line or below budget.