Maheshwari (CA Student) (37 Points)
18 May 2008Hi can anyone pls help to get me understand the Phrase of the following :
Role of CA - Debit to cost centre or credit to profit centre
Thnx
GAURAV GUPTA
(service)
(138 Points)
Replied 19 May 2008
Hi,
Profit Centre means analysis of revenue of a unit
Cost Centre means the collection of costs of a unit
The expression means whether ca should be looked as incurrance of cost by the enterprise or as valueaddition made by him against the cost incurred by the enterprise.
Maheshwari
(CA Student)
(37 Points)
Replied 22 June 2008
Cost centre is a unit in an organistaion which has a negative impact on profit. It is a subdivison in an organisation with which cost are identified for the purpose of managerial decision making and progit centre is an organistaional unit designated as a seperate entity for the purpose of revenue genertaion
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CAclubindia
