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According to Bor and Seth (2012), There Is an Important

question 13

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According to Bor and Seth (2012) , there is an important distinction between:


Definitions:

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.

Decentralized Organization

An organizational structure where decision-making authority is distributed among various levels and departments, enhancing flexibility and responsiveness.

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