Costing Basics - Unit 1 - Introduction 1

Businesses need to track the costs and income streams to create

• sales

• accurate budgets

• effective business plans

• journal entries

Which of the following is a Profit Centre (not a Cost Centre)?

• Production Department

• Service Cost Centre

• Administration Department

• Marketing Department

Costs incurred in a production cost centre of an ice-cream factory is a

• Production Cost

• Non-Production Cost

Costs incurred in a service cost centre of an ice-cream factory is a

• Production Cost

• Non-Production Cost

Cooking department of an ice-cream factory is a

• Production Cost Centre
• Service Cost Centre

Maintenance of machinery department of an ice-cream factory is a

• Production Cost Centre
• Service Cost Centre

Quality Control department of an ice-cream factory is a

• Production Cost Centre
• Service Cost Centre

Production Planning department of an ice-cream factory is a

• Production Cost Centre
• Service Cost Centre

Which department helps to sell products of an ice-cream factory

• Administration Department

• Marketing Department

Which department of an ice-cream factory places orders for raw materials with suppliers

• Administration Department

• Marketing Department