Which of the following statements about responsibility centers is FALSE?
A) Responsibility centers usually have one goal.
B) Management control systems monitor responsibility center goals.
C) Responsibility centers are usually classified according to their managers' primary financial responsibility.
D) Cost centers, profit centers and investment centers are all examples of responsibility centers.

Question

Quizplus · Accepted Answer

Responsibility centers can have multiple goals, depending on the organization's objectives and strategies. For example, a cost center may have goals related to cost reduction and efficiency, while a profit center may have goals related to revenue generation and profitability. Therefore, statement A is false.

Which of the Following Statements About Responsibility Centers Is FALSE