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Responsibility Centers
These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.
Cost Center
A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.
Profit Center
A segment or division within a company that is responsible for generating its own revenues and profits, and is evaluated based on its profitability.
Investment Center
A business unit or segment whose manager has control over cost, revenue, and investments in assets, and is evaluated on profitability and return on investment.
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