Which of the following describes a cost centre? Amounts of expenditure attributable to various activities Units of a product or service for which costs are ascertained Functions or locations for which costs are ascertained and related to cost units for control purp A section of an organisation for which budgets are prepared and control is exercised

The correct answer is **Functions or locations for which costs are ascertained and related to cost units for control purposes.**<br /><br />A cost centre is a department or section of an organization for which costs are collected and analyzed. The purpose is to track and control costs, not to directly generate revenue (unlike a profit centre). The costs are then related to cost units (e.g., products, services) to help management understand cost drivers and efficiency.<br />