Which Type of Manager Would Most Likely Be Held Responsible

question 157

Multiple Choice

Which type of manager would most likely be held responsible for the return on investment (ROI) of his segment?

• A) Investment centre
• B) Profit centre
• C) Cost centre
• D) Revenue centre

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Definitions:

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Efficiency Variances

The differences between the actual inputs used in production and the standard inputs, reflecting production efficiency.

Skill Levels

Skill levels refer to the degrees of competence or expertise in specific areas or tasks, often influencing job responsibilities and wage rates.

Direct Materials Price Variance

The difference between the actual cost of direct materials purchased and the expected (or standard) cost, impacting the overall cost of goods sold.