Match each term with the correct statement from below.
-A(n)___________ is a responsibility centre in which a manager is responsible only for costs.
A)Centralization
B)Revenue centre
C)Profit centre
D)Cost centre
E)Investment centre
F)Decentralization

Question

Quizplus · Accepted Answer

A cost centre is a responsibility centre in which a manager is responsible only for costs.

Answer: B
 A revenue centre is a responsibility centre in which a manager is responsible only for generating revenue.

Answer: C
 A profit centre is a responsibility centre in which a manager is responsible for both costs and revenues, as well as achieving a profit.

Answer: E
 An investment centre is a responsibility centre in which a manager is responsible for not only costs, revenues, and profits but also for investments and the use of assets.

Answer: A
 Centralization refers to the concentration of decision-making power at the top levels of an organization, while decentralization refers to the delegation of decision-making power throughout an organization. These terms are not related to responsibility centres.

Answer: F
 Decentralization refers to the delegation of decision-making power throughout an organization, while responsibility centres are units within an organization that are responsible for specific activities or functions. These terms are related but do not refer to the same concept.

Match Each Term with the Correct Statement from Below