Which of the following is correct regarding responsibility centers? A. Traceable costs, as used in a...
Which of the following is correct regarding responsibility centers?
A.
Traceable costs, as used in a responsibility accounting system, only consists of variable costs.
B.
Common fixed costs should be allocated to a segment and used to evaluate the segment’s performance.
C.
Cost centers, profit centers, and investment centers are all considered responsibility centers.
D.
Responsibility centers are primarily utilized in companies with centralized operations.
E.
If a manager is held responsible for generating revenue, controlling costs, and efficiently investing assets, then his division is considered a profit center and an investment center.
Homework Answers
Option C is correct i.e. Cost centers, profit centers and investment centers are all considered responsibility centers.
Reason :-
Generally, four responsibility centers are found in business :-
- Cost center
- Revenue center
- Profit center
- Investment center
Add Answer to:
Which of the following is correct regarding responsibility
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A.
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