Question

What is the role of a budget centre?

a.

Only to achieve targeted revenue collection

b.

Only to maintain work within targeted costs

c.

Only to make a target profit

d.

A budget centre encompasses several cost centers functioning with responsibilities to achieve targeted revenue collection, maintain work within targeted costs, and make a target profit during the budget period.

Posted under IC 89 Management Accounting

Answer: (d).A budget centre encompasses several cost centers functioning with responsibilities to achieve targeted revenue collection, maintain work within targeted costs, and make a target profit during the budget period. Explanation:The role of a budget centre is encompassing several cost centers with specific responsibilities.

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