Purchase Solution

Responsibility Centers

Not what you're looking for?

Ask Custom Question

You have been asked to speak about the topic of responsibility centers to a group of executives at a conference.

For this speech you should select a company/business that you are familiar with and briefly describe it. Give three examples of responsibility centers in that business. Describe how these responsibility centers interact.

Purchase this Solution

Solution Summary

This explains the concept of Responsibility Centers with examples

Solution Preview

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 respective centers.

The principle of controllability applies to responsibility accounting. The presumption underlying controllability is that every dollar earned or dollar spent is under the control of, and can be traced to, at least one manager.

Responsibility accounting represents decentralization of a business enterprise. It is comparable to a political policy of shifting ...

Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.