The part of the organization for which managers are responsible is called a:
A)related-party center.
B)responsibility center.
C)cost center.
D)shared center.

Question

Quizplus · Accepted Answer

A responsibility center is the part of an organization for which managers are responsible. This can include cost centers (which only incur costs), profit centers (which generate revenue and incur costs), and investment centers (which generate revenue, incur costs, and have control over investments). Related-party center, shared center, and cost center are not the correct terms for the part of an organization for which managers are responsible.

The Part of the Organization for Which Managers Are Responsible