CMA Foundation · Fundamentals of Financial and Cost Accounting · Cost, Cost Centre, Cost Unit and Cost Drivers
Which of the following is an example of a personal cost centre rather than an impersonal cost centre?
A salesperson or supervisor is a personal cost centre because costs are collected for a person. Boiler houses, vans and departments are locations or equipment, so they are impersonal cost centres.
- AA boiler house
- BA delivery van
- CA salesperson or a supervisorCorrect
- DA packing department
Explanation
A personal cost centre consists of a person or group of persons, such as a salesman or supervisor. Boiler house, delivery van (equipment) and packing department are locations or equipment, so they are impersonal cost centres.
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