Asked by Angel Cartagena on Jun 20, 2024
Verified
A responsibility center in which the department manager has responsibility for and authority over costs, revenues, and assets invested in the department is termed a cost center.
Responsibility Center
An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.
Cost Center
A division or department within an organization that does not directly generate profits but incurs costs, often evaluated for efficiency.
- Discern the qualities and responsibilities pertaining to diverse types of responsibility centers.
Verified Answer
OG
Oopeve GosoljitJun 26, 2024
Final Answer :
False
Explanation :
A responsibility center where the manager has control over costs, revenues, and assets is called an investment center, not a cost center. A cost center only involves responsibility over costs.
Learning Objectives
- Discern the qualities and responsibilities pertaining to diverse types of responsibility centers.