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Profit Centre Profitability

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 April 2010 In case of internal audit, how to bifurcate common costs on different profit centers.

What basis should be used for bifurcating common costs to profit centers ?

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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
27 April 2010 Two different methods can be used

1. Based on turn over of the profit centre

or

2. Based on the direct cost of the Profit centre
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