Identify which of the following statements regarding responsibility centers is false.
A)Responsibility centers usually have one objective.
B)Management control systems monitor responsibility center objectives.
C)Responsibility centers are usually classified according to their financial responsibility.
D)Cost centers, profit centers, and investments centers are all examples of responsibility centers.

Question

Quizplus · Accepted Answer

Responsibility centers can have multiple objectives, not just one. For example, a profit center may have objectives related to both maximizing revenue and minimizing costs.

Identify Which of the Following Statements Regarding Responsibility Centers Is