Asked by
Matthew Mignone
on Nov 13, 2024Verified
Which responsibility centers generate both revenues and costs?
A) Investment and profit centers
B) Profit and cost centers
C) Cost and investment centers
D) Only profit centers
Responsibility Centers
Parts or segments of an organization for which managers have authority and accountability for performance, often categorized as cost, profit, or investment centers.
Revenue Generation
The process through which a business produces income from its activities, typically through sales of goods or services.
Cost Generation
Relates to the creation or incurrence of costs or expenses in the production of goods or services.
- Identify and define different types of responsibility centers (cost, profit, investment centers) and their characteristics.
Verified Answer
CA
Learning Objectives
- Identify and define different types of responsibility centers (cost, profit, investment centers) and their characteristics.