[amp_mcq option1=”Cost Centres only” option2=”Profit Centres only” option3=”Investment Centres only” option4=”Cost Centres, Profit Centres and Investment Centres” correct=”option4″]<\/p>\n
The correct answer is D. Responsibility Centre can be categorised into: Cost Centres, Profit Centres and Investment Centres.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Here is a table that summarizes the key differences between cost centres, profit centres, and investment centres:<\/p>\n
| Responsibility Centre | Manager’s Accountability |
\n| — | — |
\n| Cost Centre | Costs only |
\n| Profit Centre | Costs and revenues |
\n| Investment Centre | Costs, revenues, and investments |<\/p>\n
I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Cost Centres only” option2=”Profit Centres only” option3=”Investment Centres only” option4=”Cost Centres, Profit Centres and Investment Centres” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-51591","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n