Compare a) Impersonal and personal cost centres b) Production and service cost centres

Compare the following:


a.) Impersonal and personal cost centres:

Impersonal Cost Centre: consist items of impersonal nature like an equipment or location. Example of Impersonal Cost Centre: a department, a branch, a region of sale, etc.

Personal Cost Centre: consist items of personal nature like a person or a group of persons. Example of Personal Cost Centre: Regional Manager, Sales Manager, Marketing Manger, etc.

b.) Production and service cost centres:

Production Cost Centre: is the place where the production activity is carried on. Example of Production Cost Centre: a assembly shop, a paint shop etc.

Service Cost Centre: is the place where all types of assistance are given to the production activities. Example of Service Cost Centre: the store department, the labour office, the account/costing department etc.
Define Direct cost and Indirect cost.
Direct Cost are all the expenses which can be identified with the individual product…
Explain fixed, variable and semi-variable costs.
Fixed Cost is the cost which remains constant ...Variable Cost is the cost which varies directly in proportion ...Semi-variable Cost is the cost which is neither fixed nor variable in nature
Explain controllable and uncontrollable costs.
Controllable Cost are the costs which can be influenced by the action...Uncontrollable Cost are the costs which cannot be influenced by the action..
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