Responsibility center

A responsibility center is an organizational unit headed by a manager, who is responsible for its activities and results.[1] In responsibility accounting, revenues and cost information are collected and reported on by responsibility centers.[2]

One type of responsibility center is the traditional profit center. Other familiar types are the cost center and the investment center.[3]

References

  1. ↑ Anthony, R.. The Management Control Function, Boston, HBS, 1988, p.64.
  2. ↑ Jae K. Shim; Joel G. Siegel, Budgeting Basics and Beyond, John Wiley & Sons, ISBN 978-0-470-38968-3
  3. ↑ Melumad, Nahum, Dilip Mookherjee, and Stefan Reichelstein. "A theory of responsibility centers." Journal of Accounting and Economics 15.4 (1992): 445-484.