The four primary types of responsibility centers and the characteristics of each are

• cost centers in which managers are primarily re¬ sponsible for controlling costs.

• revenue centers in which managers are primar¬ ily responsible for generating revenues; in some instances, managers have control over revenues and some costs.

• profit centers in which managers are responsible for generating revenue, controlling costs, and maximizing their units’ incomes.

• investment centers in which managers are re¬ sponsible for generating revenue, controlling costs, and producing a satisfactory return on the asset base under their control. LO.1