alleryStart learning →Which responsibility centre answers for revenues, costs and capital together?
AInspection center
BInstalment center
CInvestment center
DImpression center
Answer & Solution
Correct answer: C. Investment center
1. A cost centre answers for costs and a revenue centre for revenues.
2. A profit centre answers for both of those at once.
3. An investment centre adds the invested capital used by the segment.
4. So the investment centre carries the widest responsibility.
_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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