COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n):
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Cost Center
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Revenue Center
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Profit Center
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Investment Center
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Explanation:
Detailed explanation-1: -The answer is d) investment center.
Detailed explanation-2: -A revenue center is an organizational segment in which a manager is held accountable only for revenues.
Detailed explanation-3: -Profit Centre: A profit centre is a segment of an organisation whose manager is responsible for both revenues and costs.
Detailed explanation-4: -A responsibility center is an operational unit or entity within an organization, that is responsible for all the activities and tasks structured for that unit. These centers have their own goal, staffs, objectives, policies and procedures, and financial reports.
There is 1 question to complete.