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Explain the main purpose of cost centre
The main purpose of cost centre is two fields.
1. Recovery of cost: costs are collected, classified into two field in respect of a location, person or an item of equipment and then the costs are distributed over the products for recovery of incurred cost and
2. Cost control: cost centres assists in making a person responsible for the control of expenditure by the cost centre. Manager of each centre shall control costs incurred in his area of responsibility. The size of the cost centre depends on the activity and operation, and feasibility of the cost control. Sub cost centres are created if the sizes of the cost centres become too big from control point of view.
1. Explain the modern control methods with examples. 2. What are the reports produced for performance measurement? Demonstrate.
i want to get the answer for exercises 2.1 and 2.2 on strategic and tactical decisions
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Advantages of kaizen costing 1) Record individual tasks 2) Instantly replay observation 3) Select and use best practice 4) Categorize activities using kaizen terminolo
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