The group is the management team of a supermarket chain operating ten shops in out-of-town locations. Each member of the group should choose a management role, one of which must be the financial controller. Work together to prepare a proposal for establishing one profit centre, together with three cost centres within the profit centre for which each manager will be responsible, writing a definition of the responsibilities of each profit centre and cost centre. Then work together further to produce a list of costs for each cost centre, in a table as follows:

Set out one question relating to planning, one question relating to control and one question relating to decision making. Explain how the table of cost classification will help answer each of these questions.

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Type of cost Fixed/variable cost Direct/indirect for the cost centre Product/period cost