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Commerce · Q193

Costing

Graduate and Post Graduate · Commerce · question 193

Q193

Responsibility Centre can be categorised into:

A.
Cost Centres only
B.
Profit Centres only
C.
Investment Centres only
D.
Cost Centres, Profit Centres and Investment Centres
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Responsibility Centre can be categorised into Cost Centres, Profit Centres and Investment Centres. Responsibility centers are often categorized by the degree of authority and responsibility given to the manager.