A Responsibility Center in Which the Department Manager Has Responsibility

question 37

Multiple Choice

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a (n)

• A) profit center
• B) investment center
• C) volume center
• D) cost center

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Definitions:

Participative Development

A development approach that involves stakeholders or team members in the decision-making process to ensure collaborative and effective outcomes.

Budget Process

The systematic approach an organization follows to develop a budget, including planning, preparation, approval, and implementation phases.

Budget Targets

Financial performance goals set during the budgeting process that an organization aims to achieve.

Sales Budget

A financial plan detailing the expected revenues from sales over a specific period, used for setting targets and measuring performance.