alleryStart learning →How many types of responsibility centre are set out?
AFive types
BNine types
CTwo types
DTen types
Answer & Solution
Correct answer: A. Five types
1. The list runs from the narrowest responsibility to the broadest.
2. It covers cost, discretionary cost, revenue, profit and investment centres.
3. That makes five types of responsibility centre in all.
4. So the answer is five.
_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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