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    Responsibility Centers and Output of Staff Departments

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    Measuring the Output of Corporate Staff Departments. See attached file for full problem description.

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    Response to Q-1
    Yes I agree with the Dennis Johns that white collar; support department work cannot be controlled in the same manner as the production process.
    Let us first of all understand the concept of the responsibility center as in the question four types of responsibility centers is used. Use of responsibility centers is one of the most established and widely used techniques in financial control. Responsibility accounting breaks a large organization into smaller, more easily manageable units known as responsibility centers. Each unit is looked upon as a small business. Managers bear an element of responsibility for the performance of their ...

    Solution Summary

    This explains the concept of Responsibility Centers with examples