What are Untraceable Costs?
Untraceable costs are those which cannot be identified with a particular profit center, for example head office costs might be allocated to a profit center, but are not directly traceable to it.
Untraceable costs are used when producing a Contribution Margin Income Statement to monitor and measure the contribution made by a profit center.
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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.