Responsibility Centers

A responsibility center is any part of an organization that one manager has control over and is responsible for.

A = Cost Center

B = Investment Center

C = Profit Center

For each response, after the =, choose the best response (A, B, or C)

Expected return on assets employed =

Focused on managing staff and resources =

Key measures are sales and contribution margin =

Manages expense budget and service levels provided =

Manages customer sales and related costs =

Performance measured using balance sheet values =