alleryStart learning →In a cost center, the manager is held responsible only for:
ACosts
BCoats
CCrops
DClocks
Answer & Solution
Correct answer: A. Costs
1. Responsibility centres differ in what the manager is answerable for.
2. The narrowest of them covers only one side of the ledger.
3. A cost center is a segment in which a manager is held responsible only for costs.
4. Revenues are somebody else's concern.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 9 'Responsibility Accounting and Decentralization', sections 9.1-9.4_
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