A responsibility centre for which costs are accumulated is called a(n)
A) profit centre.
B) cost centre.
C) investment centre.
D) accounting centre.

Question

Quizplus · Accepted Answer

A cost centre is a responsibility centre for which costs are accumulated. The other options are defined differently: a profit centre is a responsibility centre for which both revenues and costs are accumulated, an investment centre is a responsibility centre for which both revenues and costs are accumulated and that also has control over investments in assets, and an accounting centre is not a commonly recognized type of responsibility centre.

A Responsibility Centre for Which Costs Are Accumulated Is Called