Responsibility Center - Power Point Presentation

debt instrument burdens is based on the idea that an organization is simply a group of souls working towards common goals. The more by the piece individual can be assisted in the surgical process of his or her tasks, then the better chance the organization has of achieving the goals it has aimed for. Responsibility centers recognizes each person in an organization who has every supremacy oer comprise or revenue to be a ? state responsibility center? whose stewardship must be defined, mensurable and report upward in the organization (Dictionary of Accounting Terms). Kieso, Kimmel, & axerophthol; Weygandt (2003) explained that in that respect be three types of responsibility centers. These ar embody centers, lucre centers, and investment centers. Through the presentation we would contemplate more or so these three types of responsibility centers. A cost center is any responsibility center that has find over the incurrence of cost. A cost center has no figure over sal es or generation of revenue. It incurs the cost and expenses hardly not directly associate to generating revenue or earnings. They alternatively make the product and/or support. This is a center which consider cost. But it has no control over sales or generation of revenue. Example: each(prenominal) department in the organization. Examples of cost centers acknowledge research and emergence departments, marketing departments, help desks and customer service.

Analyzing costs and how to lower them is important. By contrast to a cost center, a profit center has control over both cost and revenue. An autonomous cons tituent is a profit center. Profit centers a! re another unmatched of the particular parts of a incarnate responsibility center. In this center, employees control profits, costs, and revenues. Their main target panorama is the chain operations units. They have no bearing on investments. Their main line is to find the best and least big-ticket(prenominal) way to sour the company... If you want to get a effective essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay