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Please name at least three different 'cost centers' in a business. Discuss at least three steps that a business can take to minimize those costs.

Please name at least three different 'cost centers' in a business. Discuss at least three steps that a business can take to minimize those costs.

Solution Preview

Cost centers are those in which the manager and the center employees have control over costs. Thus they can be any unit or activity or division for which the manger is responsible for the cost. They are of two types engineered cost center and discretionary cost center. Here two things are measured: Efficiency and Effectiveness - Many services must be delivered in an efficient and effective manner. For example, timeliness is often a good indicator of efficiency. If you do the "right things," this should get reflected in the form of effectiveness.
Three different cost centers can be:

1) Material cost
2) Advertising cost
3) Repairing and Maintenance cost

Discuss at least three steps that a business can take to minimize those costs.

I Applying standard costing
Standard Costing is a comprehensive and powerful tool for maintaining standard, current and projected costs for both accounting and manufacturing ...

Solution Summary

Solution mentions material cost, advertising and repairs. Steps to minimize these costs are discussed in detail, with a bullet type list that can be expanded to a longer length, if needed.

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