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Cost centre and revenue centre

Exercise and reference answers

Left
Cost centre
Items
  1. Region
    Cost centre
    Item
    Costs only
  2. Region
    Cost centre
    Item
    Spending alone
  3. Region
    Revenue centre
    Item
    Sales only
  4. Region
    Revenue centre
    Item
    Revenues only
  5. Region
    both
    Item
    Is a segment
  6. Region
    both
    Item
    Has a manager
Right
Revenue centre
Instructions
Drop each responsibility into its centre, or into the overlap.

Explanation

_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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