Which of the following is NOT descriptive of responsibility centers?
A)They are used to isolate a unit so that it can be evaluated separately from the rest of the corporation.
B)Each responsibility center has its own budget and is evaluated on its use of budgeted resources.
C)The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan.
D)The center uses resources to produce a service or a product.
E)A responsibility center is headed by the manager responsible for the center's performance.

Question

Quizplus · Accepted Answer

Responsibility centers are used to evaluate and manage the performance of a specific unit in an organization. They typically have their own budget and use resources to produce a service or product, and are headed by a manager responsible for their performance. However, responsibility centers do not necessarily coordinate all functional areas and project developments to implement a strategic decision plan, making option C the correct answer.

Which of the Following Is NOT Descriptive of Responsibility Centers