Responsibility Center - Power Point Presentation

accountability burdens is based on the idea that an organization is only if a group of souls working towards common goals. The more respectively individual can be assisted in the implementation of his or her tasks, then the better chance the organization has of achieving the goals it has aimed for. Responsibility centers recognizes each person in an organization who has every constraint oer comprise or revenue to be a ? state responsibility center? whose stewardship must be defined, mensural and report upward in the organization (Dictionary of Accounting Terms). Kieso, Kimmel, & international ampere; Weygandt (2003) explained that in that respect be three types of responsibility centers. These argon address centers, lucre centers, and investment centers. Through the presentation we would gibe more or so these three types of responsibility centers. A cost center is any responsibility center that has lock over the incurrence of cost. A cost center has no chair over sales or generation of revenue. It incurs the cost and expenses barely not directly associate to generating revenue or earnings. They alternatively make the product and/or support. This is a center which control cost. But it has no control over sales or generation of revenue. Example: each(prenominal) department in the organization. Examples of cost centers acknowledge research and emergence departments, marketing departments, help desks and customer service.

Analyzing costs and how to lower them is important. By contrast to a cost center, a profit center has control over both cost and revenue. An autonomous constituent is a profit center. Profit centers are another unmatched of the particular parts of a incorporated responsi! bility center. In this center, employees control profits, costs, and revenues. Their main target medical prognosis is the chain operations units. They have no bearing on investments. Their main line is to find the best and least dearly-won way to sour the company... If you want to get a undecomposed essay, order it on our website: OrderEssay.net

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