A responsibility center is a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities.

Question

Quizplus · Accepted Answer

This statement is true. A responsibility center is a unit within an organization that has been assigned specific responsibilities and is accountable for its own performance. The manager of a responsibility center is responsible for achieving the objectives set for that particular center. Examples of responsibility centers include cost centers, revenue centers, profit centers, and investment centers.

A Responsibility Center Is a Part, Segment, or Subunit of an Organization