In a responsibility accounting environment, which of the following managers is considered to have the broadest responsibility?
A)Cost center manager
B)Profit center manager
C)Investment center manager
D)Revenue center manager

Question

Quizplus · Accepted Answer

Investment center managers have the broadest responsibility as they are responsible for not only generating profits but also managing the assets and investments of the organization. They have to ensure that the return on investment is maximized while also taking into account the risks involved. Cost center managers are responsible for controlling costs, revenue center managers are responsible for generating revenue, and profit center managers are responsible for both generating revenue and controlling costs within their department.

In a Responsibility Accounting Environment, Which of the Following Managers