Which of the following is NOT descriptive of responsibility centers?
A) They are used to the extent that they can isolate specific functional units such as R&D.
B) Each responsibility center has its own budget and is evaluated on its use of budgeted resources.
C) The responsibility center coordinates all the functional areas and project developments to implement the strategic decision plan.
D) The center uses resources to produce a service or a product.
E) A responsibility center is headed by the manager responsible for the center's performance.

Question

Quizplus · Accepted Answer

Responsibility centers are typically focused on a specific area or function within an organization and are responsible for using resources and achieving specific goals. However, coordinating all functional areas and project developments to implement the strategic decision plan is more reflective of a larger organizational structure or management team, rather than a specific responsibility center.

Which of the Following Is NOT Descriptive of Responsibility Centers