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Know the Types of Responsibility Centers and Finish Your Homework Answers Now

In any company, the responsibility center is a sub unit where the manager has the authority and responsibility too.  The logical source for determining the responsibility center is the detail organization chart of the company. In most cases, the common responsibility centers are the centers or the departments within that company.

With types of responsibility centers homework answers, you will get complete guidance on this subject.

Different types of responsibility centers:

The responsibility center can be divided into five types—cost center, the profit center, the investment center, the contribution center and the revenue center.

  • The cost center:

When a manager of any responsibility center controls only costs, then this responsibility center is considered as a cost center.

  • The profit center:

When the manager controls both the costs and the revenues, then that responsibility center is called a profit center.

  • The investment center:

If the manager has the full authority and responsibility for the costs, revenues, and the investments, then the responsibility centers are considered as the investment centers.

  • The contribution center:

This is center whose contribution is measured in terms of contributions it earns. Contributions are calculated as the differences between variable costs and the sales. The manager of such responsibility center is responsible for increasing the contribution.

  • The revenue center:

The main function of this center is raised revenue without any responsibility for production. The manager is fully responsible for generating sales revenues.

When you face any problem relating to your responsibility center, different types of responsibility centers homework answers will guide you to solve the problem.

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The importance of responsibility centers:

In present business scenario, the responsibility centers have much importance like—

  1. It is an important component of any management controls. The responsibility centers help in implementing business strategies.
  2. It is an organizational unit that helps the manager to take all leading decisions.
  3. The responsibility centers define the assets and the activities each manager is responsible for.

A brief idea about different responsibility centers:

There are many types of responsibility centers mentioned above of which cost centers and revenue centers are common at the operational level of any large organization. Any divisional manager is fully responsible for any operation of any business unit in which both the sales manager and the purchasing officers are responsible for generating revenue and cost. Although the responsibility centers are important for any large organization, the profit center is utilized only in small business.

Business accounting for any responsibility center:

Accounting is an integral part of any business whether it is a large organization or small. Accounting for the responsibility centers compares the actual results to the planned expectation of the responsibility centers.

When this accounting becomes difficult due to the proper knowledge of accounting, then different types of responsibility centers homework answers help the students as well as the staff of the organization to solve the problem in an easy way. Their expert’s team understand the problem, they analyze each step and take a proper decision so that you can recover your problem in a very easy way.

The basic responsibilities of responsibility centers homework answer:

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