help cost centre

System

Hi
Could anyone tell me what information is required in order to determine the profitability of a cost centre

Thanks :x :x :x

System

Re:help cost centre

Strictly speaking, a cost centre wont make a profit otherwise it would be a profit centre.

The main information you'll need, though, is:

Costs:
Labour - Payroll schedules
Materials - Purchase orders and invoices
Overheads - Invoices and cash reciepts

Income:
Sales - Sales invoices and cash book
Sundry Income - Cash book

Then obviously;
Profit/(Loss) = Income - Costs

Many cost centres in a business provide services and thus won't have any income.

Hope that helps

Chris

System

Re:help cost centre

I thought so but was told different got myself confused you are star

thanks