Accounting › Section V · Responsibility accounting and decentralization › Topic V.2
Types of responsibility centers
Once decisions are delegated, each manager needs to know what they will be judged on. Responsibility accounting matches each part of the business to the revenues, costs or investment its manager controls, and reports on it in those terms.
In this topic
- Measuring delegated managers
- Responsibility accounting
- Cost centres
- Worked example: a cost centre report
- Discretionary cost centres
- Revenue centres
- Profit centres
- Worked example: comparing profit centres
- Investment centres
- Worked example: two divisions
- Common mistakes to avoid
- Key takeaways
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