Branch accounting involves an accounting system for separate departments or branches within a business. This system ensures accurate tracking of net profit for each branch, which can be combined to determine the overall profitability of the organization.
A budget centre is a segment within an organization for which budgets are prepared and compared against actual performance as part of the budgetary control process.
Budget Cost Allowance refers to the amount of budgeted expenditure that a cost centre or budget centre is allowed to spend in relation to its budget, with consideration to the actual level of activity achieved during the budget period. It distinguishes between fixed and variable costs to adjust expenditure limits.
