Service Cost Centre Costs Are Assigned To

question 27

Multiple Choice

Service cost centre costs are assigned to:

• A) individual customers.
• B) corporate headquarters.
• C) production cost centres.
• D) units of output directly.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production, instead of earning income elsewhere.

Explicit Costs

Direct, out-of-pocket payments made for the operation of a business, such as wages, rent, and materials.

Accounting Profits

The difference between total revenues and explicit costs, representing the net income reported on a company's financial statements.