Which of the following is not descriptive of responsibility centers?
A) They are used to the extent that they can isolate specific functional units such as R&D.
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 typically not responsible for coordinating all functional areas and project developments. Instead, they are focused on a specific area within the organization and are evaluated based on their budgeted resources and performance in delivering products or services.

Which of the Following Is Not Descriptive of Responsibility Centers