Describe the three basic types of responsibility centers and explain the responsibility accounting for : cost center, profit center and Investment center
The cost center is that unit or department of the organization that does not directly produce profit but increases the costs of running the company. Usually, the cost center increases the revenue indirectly.
The responsibility accounting for cost center is to assign costs lets you determine where costs re incurred, in addition there are planned costs, one can check the cost efficiency where costs are incurred, and the variance between the ...
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