A responsibility center in which the department manager is responsible for costs, revenues, and assets for a department is called
a.a profit center
b.an investment center
c.a cost center
d.an operating center
The answer is "Investment center" |
A responsibility center is a
part or subunit of a company for which a manager has authority and
responsibility. The company's detailed organization chart is a
logical source for determining responsibility centers. The most
common responsibility centers are the departments within a
company. When the manager of a responsibility center can control only costs, the responsibility center is referred to as a cost center. If a manager can control both costs and revenues, the responsibility center is known as a profit center. If a manager has authority and responsibility for costs, revenues, and investments (i.e assets) the responsibility center is referred to as an investment center |
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