Personal and Impersonal Cost Centers: Difference and More

A cost center is such a section or department of a business organization which incurs cost but do not add directly to the profit earned by the company. One might ask what the use of such departments then is. Well, they have a significant role to play in every business organization since they monitor the functioning of the business entity on the whole and help to improve efficiency. Also, they are closely related to satisfaction of the consumers and customer satisfaction improves sales, thereby increasing the revenue.

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Difference between personal and impersonal cost centers:

A personal cost center is one which comprises of an individual or a team working together. The point of difference is that, the personal cost centers rely on employees. Examples of personal cost centers could be a sales manager (when it is just one person) or say, the HR department or marketing department (where a number of people might be working together). Get personal and impersonal cost centers assignment help to create a complete assignment on the topic.

An impersonal cost center is something completely different: it’s either a location or certain equipments which incur a cost that the company has to bear. Of course, they also add to the earnings in a roundabout manner. An impersonal cost center can be a warehouse used by the firm, machineries and equipments used for production or maintenance or it can be a sales region.

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Other cost centers:

Apart from personal and impersonal cost centers, there is some other type of cost centers as well. Of which the students must be aware. Along with personal and impersonal cost centers assignment help, students can apply for help on any other related topic and it’ll be promptly made available to them. Our functioning is flexible and your needs are our priority.

Other types of cost centers include:

  • Production cost centers, which are as the name suggests, sections where the production of the goods take place.
  • Service cost centers are to be found in organizations which sell services instead of products.
  • Process cost centers are found in industries which undertake continuous process of operations.

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