Answer Posted / jitendra kumar
A resopnsibility centre which takes only input in terms of
Cash inflow but doesn't provide any output in terms of Cash
outflow is known as cost centre. Cost centres help
organisations indirectly in improving revenues and profits
like- R&D department can help in producing good products and
increase the sale.
As every responsibility centre works individually, cost
centre is not concern with decisions of other
resoponsibility centres like investment, sale, pricing,
profit etc.
| Is This Answer Correct ? | 9 Yes | 4 No |
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