Responsibility Center - Power Point Presentation

province burdens is based on the idea that an organization is alone a group of souls working towards common goals. The more singly individual can be assisted in the consummation 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 domination 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, & vitamin A; Weygandt (2003) explained that in that respect argon three types of responsibility centers. These atomic number 18 salute centers, lucre centers, and investment centers. Through the presentation we would read more or so these three types of responsibility centers. A cost center is any responsibility center that has have got over the incurrence of cost. A cost center has no give over sales or gen eration of revenue. It incurs the be and expenses only when not directly associate to generating revenue or earnings. They quite make the product and/or support. This is a center which reign over cost. But it has no control over sales or generation of revenue. Example: each(prenominal) department in the organization. Examples of cost centers allow 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 profi t center. Profit centers are another unmatc! hed of the particular parts of a collective responsibility center. In this center, employees control profits, costs, and revenues. Their main target outlook is the chain operations units. They have no bearing on investments. Their main line is to find the best and least valuable way to sour the company... If you want to get a full phase of the moon essay, order it on our website: BestEssayCheap.com

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