Question:
What responsibility centers do we have?
Author: Hjalmer PedersenAnswer:
1. Cost center: Department or function that does not directly contribute to profit but still costs money to operate. 2. Revenue center: Department responsible for generating sales. 3. Profit center: A center that directly contributes to the company’s bottom line. 4. Investment center: An investment center is a business unit in a firm that can utilize capital to contribute directly to a company's profitability
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