Types of Responsibility Center Homework Help

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What are responsibility centers?

There are many departments in a company that requires attention in terms of advancement and finance. Responsibility centers actually recollect the information about such departments and with the help of responsibility accounting prepare monthly budgets in order to rehabilitate the system. This article is dedicated to Types of responsibility center homework help for student in which types of responsibility centers is explained.

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Types of responsibility centers

Our Types of responsibility center homework help article writers have compiled the following 4 types of responsibility centers that are and should be installed in companies.

1. Cost centre: here the managers are responsible for the cst incurred in the department but not responsible for any revenue generated. As our Types of responsibility center homework help experts say, responsibility id quite restricted to cost. The production and service departments in many manufacturing firms are termed as cost centers.

2. Profit centre: here the manager is almost responsible for both cost incurred and revenue generated. Thus, a manager can make decisions that can affect both the cost and revenues of the company. This authority is given to the managers by keeping in account the maxim earned profit.

3. Revenue centre: generation of sales revenue is the main task of this centre. In this article for Types of responsibility center homework help we explain that the manager does not possess any power in terms of cost or investment in assets. Rather the actual revenue and budgeted revenue are compared together to understand the expenses.

4. Investment centre: responsible for both profit and investment, this centre manager holds control over the amount invested into a particular asset. The credit policies can also be altered by the manager that has a direct effect over debt collection.

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