Responsibility center

Last updated: 21.03.2016

Responsibility center is an object for which costs/revenues/capital expenditures are specifically collected and analyzed. Each responsibility center is usually managed and controlled by a separate manager.

The entity is often internally split into various types of responsibility centers for the purposes of smooth management, controlling and planning (budgeting).

 

Examples of responsibility centers:

  • department (group of departments) – usually each department has its own responsibility  center
  • production hall
  • factory
  • machine
  • project

Responsibility centers can be classified as:



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