Definition of responsibility centre
It is defined as an activity centre of a business organization entrusted with a special task . Under modern budgeting and control , financial executive tend to develop responsibility centres for the purpose of control . Responsibility centres can broadly be classified into three categories . They are
Cost centre
Profit centre
Investment centre
It is defined as an activity centre of a business organization entrusted with a special task . Under modern budgeting and control , financial executive tend to develop responsibility centres for the purpose of control . Responsibility centres can broadly be classified into three categories . They are
Cost centre
Profit centre
Investment centre
