Question

Which of the following is not applicable to responsibility accounting?

Options

• Investment centre

• Accounting centre

• Profit centre

• Cost centre

Answer 1

Accounting centre

Explanation - 

Accounting centre is not included in the responsibility accounting process. Responsibility accounting is a method in which several divisions within an organisation are designated as responsibility centres. Each department is given a goal to achieve, and the department head (manager) is held accountable for attaining it. Cost centres, investment centres, profit centres, and revenue centres are examples of several sorts of responsibility centres.