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Costt classification

1.5 Cost centree

A coost centre is ‘a unit oof product oor service in relation tto which costs
are ascertaineed’. A cost centre is uused as a ‘collecting place’ for ccosts.
Theere are manny types off cost centtres.

Exampples of costt centres inn relation too a hotel:

Type Exammple

Service locaation

Functionn

Activityy

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