{"id":3207,"date":"2021-06-29T19:11:22","date_gmt":"2021-06-29T13:41:22","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=3207"},"modified":"2025-10-07T12:26:07","modified_gmt":"2025-10-07T06:56:07","slug":"cost-centre-meaning","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/cost-centre-meaning\/","title":{"rendered":"Cost Centre Meaning | Cost Units &#8211; Cost Accounting"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Cost Centre Meaning<\/mark><\/h2>\n\n\n\n<p>It is a location, person or item of equipment for which cost may be ascertained and used for cost control. It is a convenient unit of the organization for which cost may be ascertained. The main purpose of ascertainment of cost is to control the cost and fill up the responsibility of the person who is in charge of the cost centre.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-light-green-cyan-background-color has-background\">Types of Cost Centre <\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span style=\"text-decoration: underline;\">Personal Cost <a href=\"https:\/\/icmai.in\/upload\/CASB\/CAS_13.pdf\" data-type=\"URL\" data-id=\"https:\/\/icmai.in\/upload\/CASB\/CAS_13.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Centre<\/a>:<\/span><\/strong> It consists of a person or group of persons. e.g. machine operators, salesmen, etc.<\/li>\n\n\n\n<li><strong><span style=\"text-decoration: underline;\">Impersonal Cost Centre:<\/span><\/strong> It consists of a location or an item of equipment or a group of these. E.g. factories, Machines etc.<\/li>\n\n\n\n<li><strong><span style=\"text-decoration: underline;\">Operational Cost Centre:<\/span><\/strong> This consists of machines or persons carrying on similar operations.<\/li>\n\n\n\n<li><strong><span style=\"text-decoration: underline;\">Process Cost Centre:<\/span><\/strong> This consists of a continuous sequence of operations or specific operations.<\/li>\n\n\n\n<li><strong><span style=\"text-decoration: underline;\">Production Cost Centre:<\/span><\/strong> This is the centre where actual production takes place or these include, those departments that are directly engaged in manufacturing activity and contribute to the content and form of the finished product. e.g. Cutting, Assembly and Finishing Departments etc.<\/li>\n\n\n\n<li><strong><span style=\"text-decoration: underline;\">Service Cost Centre:<\/span><\/strong> This is the Centre that renders services to production centres. These contribute to the production process in an indirect manner.<br>e.g. Stores department, RepairsandMaintainance department, H.R. Department, Purchase Department etc.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning-1024x576.png\" alt=\"Cost Centre Meaning\" class=\"wp-image-3219 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning-1024x576.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning-300x169.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning-768x432.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning-1536x864.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/06\/Cost-Centre-Meaning.png 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Cost Centre Meaning<\/figcaption><\/figure>\n<\/div>\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-light-green-cyan-background-color has-background\">Meaning of Cost Units<\/h3>\n\n\n\n<p>It is a unit of product, service, or time in terms of which costs is ascertained or expressed. It is basically, a unit of quantity of product or service in relation to which costs may be ascertained or expressed.<\/p>\n\n\n\n<p>A few examples of cost units are given below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Name of Industry<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Cost Unit<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Textiles<\/td><td class=\"has-text-align-center\" data-align=\"center\">Meter, yards<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Transport<\/td><td class=\"has-text-align-center\" data-align=\"center\">Passenger km<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Power<\/td><td class=\"has-text-align-center\" data-align=\"center\">Kilowatt-hour<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Paints<\/td><td class=\"has-text-align-center\" data-align=\"center\">Litre<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Iron and Steel<\/td><td class=\"has-text-align-center\" data-align=\"center\">Tonne<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Canteen<\/td><td class=\"has-text-align-center\" data-align=\"center\">Per meal<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Chemical<\/td><td class=\"has-text-align-center\" data-align=\"center\">Litre, kilogram<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Readymade Garments<\/td><td class=\"has-text-align-center\" data-align=\"center\">Number<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Petrol<\/td><td class=\"has-text-align-center\" data-align=\"center\">Litre<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is Cost Accounting?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Cost<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Costing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Cost Accounting<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":3219,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[1665],"class_list":["post-3207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc","tag-cost-centre-meaning"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=3207"}],"version-history":[{"count":7,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3207\/revisions"}],"predecessor-version":[{"id":39029,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/3207\/revisions\/39029"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/3219"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=3207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=3207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=3207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}