ACCA MA · Chapter 1 · Question 7 of 10
A manager is responsible for the revenues and costs of a division but has no authority over capital investment decisions. What type of responsibility centre is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Profit centre
Explanation
A profit centre manager controls both revenues and costs and is therefore assessed on profit. An investment centre manager also controls capital investment, a cost centre manager controls costs only, and a revenue centre manager is responsible only for revenues.
More The nature, source and purpose of management information MCQs
- Q9A production manager compares actual output and costs with the budget for the month and takes action to correct an overspend on materials…
- Q10Which of the following statements about the cost and value of information is correct?
- Q1Which of the following best describes the difference between data and information?
- Q2Which of the following is NOT generally regarded as a quality of good management information?
- Q3Which of the following decisions is most likely to be classified as an operational decision?