CIMA BA2 · Chapter 1 · Question 7 of 12
The manager of a division is responsible for its revenues, its costs and decisions about the non-current assets it uses. What type of responsibility centre is the division?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Investment centre
Explanation
An investment centre manager controls revenues and costs and also has authority over capital investment in the centre's assets. A profit centre manager controls revenues and costs but not investment, a cost centre manager controls only costs, and a revenue centre manager is accountable only for revenues.
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