Departments, such as accounting, finance, general administration, legal, and personnel, are usually considered to be cost centres. In addition, manufacturing facilities are often considered to be cost centres.Single choice
A
True
B
False

Question

Departments, such as accounting, finance, general administration, legal, and personnel, are usually considered to be cost centres. In addition, manufacturing facilities are often considered to be cost centres.Single choice

A

True

B

False

BlackTom AI · Accepted Answer

In cost accounting and management accounting, cost centers are parts of an organization where costs are accumulated. 
Option 1 says True: departments such as accounting, finance, general administration, legal, and personnel are usually considered cost centers, and manufacturing facilities are often considered cost centers as well. This aligns with standard practice, since these areas typically incur costs that management seeks to control and allocate for budgeting and performance measurement. 
Option 2 says False: if one claimed that only some areas are cost centers or that manufacturing facilities are never cost centers, that would contradict conventional classification. Manufacturing operations typically generate costs (direct and indirect) that are traced or allocated to products or departments, which justifies labeling them as cost centers. 
Examining the broad definition, cost centers are units where costs are collected, not profit centers, revenue centers, or investment centers. Therefore, both administrative functions and manufacturing facilities commonly fit the cost center designation. 
To summarize, the statement in Option 1 reflects the usual categorization found in many organizations, while Option 2 fails to acknowledge the standard treatment of manufacturing facilities as cost centers.

Departments, such as accounting, finance, general administration, legal, and personnel, are usually considered to be cost centres. In addition, manufacturing facilities are often considered to be cost centres.Single choice

Similar Questions

The manager of a cost centre has control over:

The manager of a cost centre has control over:

A 62.9 kg lady is standing on a weighing scale in an elevator as shown in the diagram below. Assume gravitational acceleration = 15 ms-2 Given that the elevator is accelerating upwards at 3.7 ms-2 , determine the magnitude of the normal force on the lady.

An object is fired from ground level at an angle of 31.9 degrees to the horizontal. Taking acceleration due to gravity = 7.65 ms-2 If the initial speed is 5.6 ms-1, how far from the starting point will it hit the ground? Assume air resistance is negligible.

Which of the following equations of motion would be used to calculate the displacement given the initial and final velocities as well as the acceleration?

A 51.8 kg lady is standing on a weighing scale (calibrated to 9.81 ms-2) in an elevator as shown in the diagram below. The scale is then calibrated to 7.67 ms-2 Given that the elevator is accelerating downwards at 2.2 ms-2 , determine the reading on the scale.

An object is fired from ground level at an angle of 39 degrees to the horizontal. Taking acceleration due to gravity = 7.65 ms-2 If the initial speed is 6.8 ms-1, how far from the starting point will it hit the ground? Assume air resistance is negligible.

Which of the following equations of motion would be used to calculate the displacement given the initial and final velocities as well as the time taken?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler