The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a:
A) control center
B) budgetary area
C) responsibility center
D) managerial department

Question

Quizplus · Accepted Answer

A responsibility center is a budgetary unit led by a manager who has both the authority over and responsibility for the unit's performance. Option A, control center, is not a commonly used term in management accounting. Option B, budgetary area, is not a recognized term in management accounting. Option D, managerial department, is too broad a term that does not necessarily refer to a budgetary unit with a specific manager responsible for its performance.

The Budgetary Unit of an Organization Which Is Led by a Manager