Which of the followings are the types of decentralisation in an organisation ? A. Profit Centres B.…
In management control systems and responsibility accounting, decentralized organizational units (responsibility centres) are classified into: (A) Profit Centres (accountable…
Choose your answer
Which of the followings are the types of decentralisation in an organisation ?
A. Profit Centres
B. Service Centres
C. Cost Centres Investment
Answer and explanation
Correct answer B
In management control systems and responsibility accounting, decentralized organizational units (responsibility centres) are classified into: (A) Profit Centres (accountable for both revenues and costs), (C) Cost Centres (accountable for controllable costs), and (D) Investment Centres (accountable for profits relative to invested capital, such as ROI and EVA) (A, C and D Only).
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UGC NET Commerce