Indicate Whether Each of the Following Statements About Responsibility Centers

Indicate whether each of the following statements about responsibility centers is true or false.
_____ a) A responsibility center controls identifiable revenue or expense items.
_____ b) To be designated as a responsibility center, a department must be a large segment of an organization.
_____ c) A cost center generates revenues and expenses.
_____ d) Cost centers are commonly found at all levels of the organization chart.
_____ e) The manager of a profit center is evaluated based primarily on his/her ability to control costs.

Correct Answer:

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a) True
b...

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