Multiple choice

Directions: Choose the correct option for the given question.

Cost pertaining to a _____ may be broadly divided into two portions i.e., direct and indirect.

  1. company

  2. firm

  3. business organisation

  4. cost centre

  5. profit centre
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cost centre is a location, person, or item of equipment for which costs may be ascertained and used for the purpose of cost control. These costs are categorized into direct costs, which are traceable, and indirect costs, which are allocated.

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