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Business Studies

Manager & Management

is the smalle...

Question

__________ is the smallest segment of activity or area or responsibility for which costs are accumulated.

A

Cost object

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B

Cost centre

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C

Cost driver

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D

None of the above

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Solution

The correct option is B Cost centre
Cost centre is defined as a location or a department against which the cost is accumulated. Examples of cost centre are like marketing department or R&D department.

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