A responsibility centre for which a separate measure of revenues and/or costs is obtained is called a(n)
A) accounting centre.
B) segment.
C) contribution centre.
D) quality control centre.

Question

Quizplus · Accepted Answer

A segment is a responsibility centre for which separate measure of revenues and/or costs are obtained, hence it is the correct answer. An accounting centre is responsible for the preparation and reporting of financial information, but it may not have separate measures of revenues and costs. A contribution centre is a type of responsibility centre that focuses on the contribution of the centre to the overall profits of the company, but it may not necessarily have separate measures of revenues and costs. A quality control centre is responsible for ensuring the quality of products or services, but it may not have separate measures of revenues and costs.

A Responsibility Centre for Which a Separate Measure of Revenues