The correct answer is D. Responsibility Centre can be categorised into: Cost Centres, Profit Centres and Investment Centres.
A cost centre is a responsibility centre where the manager is accountable for costs only. The manager of a cost centre is responsible for controlling costs, but does not have control over revenue.
A profit centre is a responsibility centre where the manager is accountable for both costs and revenues. The manager of a profit centre is responsible for controlling costs and generating revenue.
An investment centre is a responsibility centre where the manager is accountable for costs, revenues, and investments. The manager of an investment centre is responsible for controlling costs, generating revenue, and making investment decisions.
Here is a table that summarizes the key differences between cost centres, profit centres, and investment centres:
| Responsibility Centre | Manager’s Accountability |
| — | — |
| Cost Centre | Costs only |
| Profit Centre | Costs and revenues |
| Investment Centre | Costs, revenues, and investments |
I hope this helps! Let me know if you have any other questions.