On an organizational chart, from bottom to top, which of the following is the order of responsibility centers?
A)Cost, profit, investment
B)Cost, investment, profit
C)Profit, cost, investment
D)Profit, investment, cost

Question

Quizplus · Accepted Answer

In an organizational chart, responsibility centers are typically arranged from those with the most basic level of responsibility to those with the most comprehensive. Cost centers are at the base, responsible only for controlling costs. Profit centers have the responsibility for both costs and revenues, making them a step above cost centers. Investment centers are at the top, with responsibility for costs, revenues, and investments in assets. Thus, the order from bottom to top is cost, profit, investment.

On an Organizational Chart, from Bottom to Top, Which of the Following