Question

A location for which cost is incurred is a __________​

Answer 1

Answer:

Your Answer:-

Explanation:

A cost incurred is a cost for which a business has become liable, even if it has not yet received an invoice from a supplier as documentation of the cost. This is an accrual accounting concept

Answer 2

Answer:

A location for which cost is incurred is a Cost center.

Explanation:

A cost center exists as a department or function within an organization that does not directly add to profit but still costs the organization money to perform. Cost centers only contribute to a company's profitability indirectly, unlike a profit center, which contributes to profitability directly via its activities.

• A cost center exists as a cost unit.
• A cost center is defined as a function or department within a company that does not directly affect revenues and profits but incurs expenditures for its operations.
• In terms of profits, the cost centers create an indirect contribution.
• Cost center managers, such as those in human resources and accounting, are accountable for keeping costs in line or below budget.

Hence, a location for which cost exists incurred is a cost centre.

SPJ2