A Responsibility Centre Whose Success Is Measured NOT Only by Its

question 3

Multiple Choice

A responsibility centre whose success is measured NOT only by its income, but also by relating that income to its invested capital is called a(n)

• A) profit centre.
• B) cost centre.
• C) investment centre.
• D) accounting centre.

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Definitions:

Performance Measures

Metrics or criteria used to evaluate the effectiveness, efficiency, or success of an organization or individual's work.

Small Favors

Minor acts of kindness or assistance that are offered or exchanged, often informally or without expectation of reciprocation.

Decentralized

Refers to the distribution of functions, powers, people, or things away from a central location or authority.

Decision Rights

The authority to make decisions on specific matters within an organization, often delineated by roles, responsibilities, or hierarchy.