Which of the Following Statements Regarding Responsibility Centres Is False

question 51

Multiple Choice

Which of the following statements regarding responsibility centres is false?

• A) Responsibility centres usually have one objective.
• B) Management control systems monitor responsibility centre objectives.
• C) Responsibility centres are usually classified according to their financial responsibility.
• D) Cost centres, profit centres and investments centres are all examples of responsibility centres.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Earnings Per Share

A financial metric calculated by dividing the company's net income by the number of its outstanding shares, indicating profitability on a per-share basis.

Income Statement

A financial document that reports a company's financial performance over a specific period, including revenue, expenses, and net income.

Income Tax Expense

The total amount of income tax that a company is obliged to pay to tax authorities, based on its earnings.