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Answer Posted / himanshu
Cost centres are the various departments to which various
kinds of costs are allocated.
In layman terms-If the executive of Administrative
department drinks the coffee than the cost can not be
charged to maufacturing department but to administrative
department.
Technical terms pkgng cost is allocated to sales n distb
department.
Cost of raw material to manufacturing dept and so on.
For more referance-meheshwari and mittal
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