The role of a cost centre within a business is to monitor and control
A - HSC - SSCE Business Studies - Question 1 - 2021 - Paper 1
Question 1
The role of a cost centre within a business is to monitor and control
A. assets.
B. expenses.
C. liabilities.
D. receipts.
Worked Solution & Example Answer:The role of a cost centre within a business is to monitor and control
A - HSC - SSCE Business Studies - Question 1 - 2021 - Paper 1
Step 1
A. assets.
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Answer
While assets are important for a business, they are not the main focus of a cost centre. A cost centre primarily deals with tracking and managing costs rather than monitoring assets.
Step 2
B. expenses.
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Answer
Correct. The primary role of a cost centre is to monitor and control expenses. It helps in keeping track of costs associated with various departments or sections of a business, allowing for better financial management.
Step 3
C. liabilities.
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Answer
Liabilities refer to the obligations of a business rather than costs incurred. Cost centres do not focus on monitoring liabilities.
Step 4
D. receipts.
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Answer
Receipts are related to income and revenues rather than costs. Therefore, monitoring receipts is not the role of a cost centre.
