Question

.. Under Machine Hour Rate method machine is treated as :
(A) Cost Unit
(B) A Cost Centre
(D) None of these
(C) Service Depatment​

Answer 1

Answer:

a cost centre is the correct answer

Explanation:

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Answer 2

Answer:

The correct answer to the question is an option (B) A cost Centre.

Explanation:

A Cost Centre:

A cost Centre may be defined as a function or department within a company which is not directly going to generate revenues and profits for the company but is still incurring expenses to the company for its operations. The contributions made by the cost centres in terms of profits are indirect.

It is not like a profit Centre, whose actions will directly result in the profits for the company. The fields of the cost centres, like human resource executives and accountants, are given the responsibility of keeping the costs well below the budget allocated to them.

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