Untraceable Costs

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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Last modified March 23rd, 2016 by Team

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