Production cost centres are defined as:

Production cost centres are defined as:

• A. All finance-related offices.
• B. Non-production support departments.
• C. Outside suppliers handling manufacturing.
• D. Those which are actively involved in the production process.

Answer: (D)

In cost accounting, production cost centres are the parts of the factory that actually transform inputs into finished goods. They are actively involved in the production process, so the costs traced to them relate directly to manufacturing. This distinguishes them from finance or administrative offices, non-production support departments, or external suppliers, which do not themselves perform production. Therefore, the definition that matches is those units that are actively involved in the production process.

In cost accounting, production cost centres are the parts of the factory that actually transform inputs into finished goods. They are actively involved in the production process, so the costs traced to them relate directly to manufacturing. This distinguishes them from finance or administrative offices, non-production support departments, or external suppliers, which do not themselves perform production. Therefore, the definition that matches is those units that are actively involved in the production process.