Asked by Samuel Libertus on Jul 28, 2024
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Cost centre managers are often evaluated by comparing actual costs under their control against budgeted or standard costs using variance analysis.
Cost Centre Managers
Individuals responsible for managing a department or unit within an organization that does not directly add to profit but incurs costs.
Variance Analysis
The process of investigating the difference between planned financial outcomes and actual financial performance.
Standard Costs
The predetermined costs associated with manufacturing a product, which are used for budgetary and inventory valuation purposes.
- Identify the differences between profit centers, investment centers, and cost centers.
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Learning Objectives
- Identify the differences between profit centers, investment centers, and cost centers.
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