The centers such as revenue, cost, investment and profit all are known as ___________?

Correct answer: C. responsibility center

  • A. marketing center
  • B. financial center
  • C. responsibility center
  • D. planning center

Explanation

Revenue, cost, profit, and investment centers are types of responsibility centers because each manager is accountable for a specified area of performance. Their classification depends on the responsibility assigned to the manager.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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