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Cost centres and profit centres - short answer questions


Question 1

Explain the difference between a cost centre and a profit centre.

Question 2

Describe the difference between authority and responsibility.

Question 3

Explain two reasons for having cost/profit centres.

Question 4

Explain why a profit centre is also a cost centre, but not all cost centres are profit centres.

Question 5

Explain how a school can be a profit centre, but why department within it are normally cost centres.