--%>

Define Responsibility Center

Responsibility Center: It is an organizational unit headed by the manager or a group of managers who are responsible for its actions. The responsibility centers can be measured as revenue centers (that is responsible for revenue or sales only), cost centers (that is, responsible for costs or expenses only), profit centers (that is, responsible for revenues and costs), or investment centers (answerable for revenues, investments, and costs).

   Related Questions in Managerial Accounting

  • Q : Avoidable interest The amount of

      The amount of interest that an organization would have avoided if it had not made the expenditures for an asset. Avoidable interest is calculated when an entity is self- constructing an asset. The cost of the asset can include material, labor, and overhead plus some interest. The c

  • Q : Calculate From the books of Aggarwal

    From the books of Aggarwal Bors, the following information have been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% The firm is proposing to buy a new plant which can generate additional annual profit of Rs. 10,000. The fixed

  • Q : Cash coverage of growth A financial

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

  • Q : Annual report A company's annual report

      A company's annual report is the single most important way for it to convey itself to potential investors. As such, it should be no surprise tha

  • Q : Performance evaluation and

    Write down a short note on the Performance evaluation and control in decision making process?

  • Q : Classification of costs with examples

    describe how costs can be classified giving examples in each classification. explain how the different cost classifications can assist management in decision making

  • Q : What is Service What do you mean by

    What do you mean by Service: It is an intangible product or task rendered directly to a client or customer.

  • Q : Features of the management accounting

    What are the various features of the management accounting information system?

  • Q : Main users of the accounting information

    Briefly list out the main users of the accounting information which are related to the business?

  • Q : Regions of decision making process What

    What are the possible broad regions of decision making process where management accounting information is required?