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Explain cost center in the context of Cost Management Accounting?

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Answered 2012-06-13 06:52:14

Explain cost center in the context of cost accounting

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i dont know. you explain that to me

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It can be defined as a system of accounting under which each departmental head is made responsible for the performance of his department. under this system is made a SEMI-AUTONOMOUS profit center i.e.a center responsibel for the generation of profit.a department generates profit by "SELLING"its o/p to the other departements or profit centers in the same organisation.the prices at which one one department(or) profit center to the other departement or profit center may be fixed in any of the following ways: 1.MARK ON ACTUAL COST 2. MARK UP ON STANDARD COST 3.MARKET PRICE 4.NEGOTIATED PRICE.

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what does that mean?please explain

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