PPT - Difference b/w Cost & Financial Accounting | Cost Accounting - B Com PDF Download

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A defined area, machine or person to whom 
direct and indirect cost are allocated. Also 
known as Cost pool and Expense Centre.
It is a department within a company that does 
not produce direct profit and adds to the 
cost of running a company.
The manager and employers of a cost centre 
are responsible for its costs but not 
responsible for revenues or investment 
decisions.
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A defined area, machine or person to whom 
direct and indirect cost are allocated. Also 
known as Cost pool and Expense Centre.
It is a department within a company that does 
not produce direct profit and adds to the 
cost of running a company.
The manager and employers of a cost centre 
are responsible for its costs but not 
responsible for revenues or investment 
decisions.
? Process Cost Centre
? Product Cost Centre
? Service Cost Centre
? Impersonal and Personal Cost Centre
? Operation Cost Centre
Page 4


A defined area, machine or person to whom 
direct and indirect cost are allocated. Also 
known as Cost pool and Expense Centre.
It is a department within a company that does 
not produce direct profit and adds to the 
cost of running a company.
The manager and employers of a cost centre 
are responsible for its costs but not 
responsible for revenues or investment 
decisions.
? Process Cost Centre
? Product Cost Centre
? Service Cost Centre
? Impersonal and Personal Cost Centre
? Operation Cost Centre
While preparing cost accounts, it becomes 
necessary to select a unit with which 
expenditure may be identified.
The quantity upon which cost can be 
conveniently allocated is known as a unit of 
cost or cost unit.
E.g. per person, per piece , per kg etc.
Page 5


A defined area, machine or person to whom 
direct and indirect cost are allocated. Also 
known as Cost pool and Expense Centre.
It is a department within a company that does 
not produce direct profit and adds to the 
cost of running a company.
The manager and employers of a cost centre 
are responsible for its costs but not 
responsible for revenues or investment 
decisions.
? Process Cost Centre
? Product Cost Centre
? Service Cost Centre
? Impersonal and Personal Cost Centre
? Operation Cost Centre
While preparing cost accounts, it becomes 
necessary to select a unit with which 
expenditure may be identified.
The quantity upon which cost can be 
conveniently allocated is known as a unit of 
cost or cost unit.
E.g. per person, per piece , per kg etc.
The elements can be classified in following 
three parts:
? Material
? Labour
? Overheads