GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a type of responsibility centre?
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Profit Centre
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Investment Centre
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Cost or Expense Centre
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All of the above
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Explanation:
Detailed explanation-1: -There are three types of responsibility centers-expense (or cost) centers, profit centers, and investment centers. In designing a responsibility accounting system, management must examine the characteristics of each segment and the extent of the responsible manager’s authority.
Detailed explanation-2: -A responsibility center can be a cost center, a profit center, an investment center, or other company-defined administrative center. Examples of responsibility centers are a sales office, a purchasing department for several locations, and a plant planning office.
Detailed explanation-3: -Cost Centre: Revenue Centre: Profit Centre: Investment Centre:
There is 1 question to complete.