CMA Foundation · Fundamentals of Financial and Cost Accounting · Cost, Cost Centre, Cost Unit and Cost Drivers
Which of the following is correctly classified as a personal cost centre?
The sales manager is a personal cost centre because personal cost centres are persons or groups of persons. The boiler house and stores department are locations, and the delivery vans are equipment, so all three are impersonal cost centres.
- AA boiler house in a factory
- BA fleet of delivery vans
- CThe sales manager of a companyCorrect
- DThe stores department
Explanation
A personal cost centre consists of a person or group of persons, such as the sales manager. A boiler house and the stores department are location-based (impersonal), and a fleet of vans is equipment, so these are impersonal cost centres.
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