Which of the following statements about responsibility centers is FALSE? 1. Responsibility centers usually have one...

Which of the following statements about responsibility centers is FALSE?

		1. Responsibility centers usually have one goal.
		2. Management control systems monitor responsibility center goals.
		3. Responsibility centers are usually classified according to their managers' primary financial responsibility.
		4. Cost centers, profit centers and investment centers are all examples of responsibility centers.

Expert Solution

The following statement about Responsibility centers is false :

Answer :

1) Responsibility Centers usally have one goal.

Explanation :

Responsibility Centers are classifed as

Cost center which has goal to keep check on costing methods of organisation.
Revenue Center which has goal related to revenue genration of organisation.
Investment Center which has goal for appropriate investment of capital.
Profit Center which has goal to increase profit of organisation.

Responsibility Center is classified as cost center, revenue center, investment center and profit center which all can not have same goal.

Thus, Responsibility center usally have not one goal for organisation.

ekkarill92 answered 2 years ago

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