ACC 220 Week 8 Assignment Responsibility Center Presentatio

ACC 220 Week 8 Assignment Responsibility Center Presentatio...

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Responsibility Centers ACC 220
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What is a Responsibility Center? The Responsibility is the unit in the organization that has control over costs, revenues, or investment funds.
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Responsibility Centers further defined It is an organization unit for which a manager is made responsible. The center’s manager and supervisor establish specific and measurable goals for the responsibility center. The goals should promote the long-term interest of the organization.
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The basic definition of a responsibility center Lowest organizational level at which funds control functions are carried out. Generally the same as divisions in an operating component.
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For accounting purposes, responsibility centers have four classifications: Cost Centers Revenue Centers Profit Centers Investment Centers
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Cost Centers Part of a business to which a cost is allocated for the purposes of strategic planning. Cost centers can be large divisions of a business, departments, small teams, or even individuals
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ACC 220 Week 8 Assignment Responsibility Center Presentatio...

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