Post a New Question


posted by .

So in accounting there are 3 responsibility centers which are:
Cost Center
Profit Center
Investment Center

Why do these 3 need separate budgets?

  • Accounting -

    I would add a fourth responsibility center, the revenue center. Why do the need separate budgets? So they can be monitored, and controlled, and someone can be accountable for revenue, cost, profit, and investments.

  • Accounting -


    So, if you were to give an example of the kinds of decisions where incremental analysis would be used in each center, what examples would you give?

  • Accounting -

    We will be happy to critique your thinking.

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question