A 'Cost Centre' is: MCQ with Answer and Explanation

Question Report Error

A 'Cost Centre' is:

A. A sales territory

B. A location, person, or item of equipment for which costs are accumulated

C. A method of pricing

D. A unit of product

Answer: Option B

Solution (By JKExamLibrary)

Cost centre is a segment of the organization where costs are collected, e.g., department, machine.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

A: Standard costing is a system of cost control. R: It involves comparing standard costs with actual costs to find variances. Choose the correct option.

A. Both A and R are true and R is the correct explanation of A

B. A is false but R is true

C. A is true but R is false

D. Both A and R are true but R is NOT the correct explanation of A

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Correct Answer: Option A

Explanation:
Standard costing controls costs by setting predetermined standards and analyzing deviations (variances) from these standards. R correctly describes the core mechanism of standard costing.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping