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.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
While assets are important to a business, a cost centre specifically focuses on monitoring and controlling costs rather than on asset management.
Step 2
B. expenses.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The primary purpose of a cost centre is indeed to monitor and control expenses within a business. This means tracking costs incurred and ensuring they stay within budget allocations.
Step 3
C. liabilities.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Liabilities, although they represent obligations of a business, are not the main focus of a cost centre. The purpose here is to track and manage costs.
Step 4
D. receipts.
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Receipts relate to documenting transactions and income, which is outside the main focus of cost centres, as they manage costs rather than sales.
