What is a Responsibility Centre and why are responsibility centres established? Briefly explain each type of responsibility centre. 

A Responsibility Centre (RC) is a unit of an organization that is responsible for specific tasks or activities and has control over the resources needed to carry out those tasks. The purpose of establishing responsibility centres is to assign accountability for specific results or outcomes and to facilitate effective management control and performance evaluation.

There are several types of responsibility centres, each with a unique set of characteristics and responsibilities. These include:

Cost Centre: A cost centre is responsible for controlling and managing costs. The objective of a cost centre is to keep costs within budget while maintaining the quality of products or services. Cost centres typically do not generate revenue, but they can have a significant impact on the profitability of the organization. Examples of cost centres include the accounting department, administrative services, and maintenance.

Revenue Centre: A revenue centre is responsible for generating revenue for the organization. The objective of a revenue centre is to increase sales and revenue while maintaining or improving the quality of products or services. Examples of revenue centres include sales departments, marketing departments, and customer service departments.

Profit Centre: A profit centre is responsible for both generating revenue and managing costs. The objective of a profit centre is to maximize profits by increasing revenue and reducing costs. Profit centres typically have a high degree of autonomy and decision-making authority. Examples of profit centres include divisions within a company, product lines, or regional offices.

Investment Centre: An investment centre is responsible for managing investments ____ _______ ________ ____ ________ __________ _________ ___ ___.
____ __________ ____ _______ _______ ________ ____.
___ __________ __________ ______ ___ _____ ___ ______ _______.
____ ___ _______ ___ _______ _____ ______.
_________ ___ _______ ______ ________ ________ _________ _____ _______ _______.
________ ________ ______ _____ ______ __________.
____ ____ ______ __________ ____ _________.
___ _______ ____ ________ ____ ____ __________.
________ _____ _______ ________ ____ ________ ____ _______ _____.
________ _____ _________ __________ __________ ________ _________ _______ _______ _______ ______.
_________ _________ _______ ______ _____.
______ ____ __________ __________ _____ ___ ______ ____ __________ _____ ______.
___ _______ ________ __________ ____ __________.
__________ ________ ___ _______ ______ _______ ___ ________ _________.
_______ ______ _______ ___ __________ ____ ____ _____ ______ ____ _____ ____.
_______ ________ ____ _________ ____ ___ __________ ________ _____.
_____ ______ _____ ______ ________ _______ __________ _______ _________ ___ ________.
_____ _______ __________ ___ ________ ___.
_________ ________ ______ ___ _______ ____ __________ _____ __________.
______ ___ __________ ____ _______ ____ ____.
_________ _____ ____ ____ _________ __________ _____ _____ ________.
____ ____ ____ _________ ____ _____.
_________ ___ ___ ____ _________ _________ ______ _______ __________ ______ ___.
_________ _____ ______ _____ ___.
________ ________ ___ _________ ________ _________ _______ ______ ______ _____ ________.
________ _____ _______ _____ ______ _________ _________ ___ ________ _______.
_________ ______ _______ ______ ________ _____ ____ _________ ________.
__________ ____ __________ _________ ________ ___ __________ __________ __________ _____ ________.
______ ________ _________ __________ ____ ___ ________.
_________ ______ ___ ____ _______ _____ ______ ______ __________ ___.
______ ________ ____ _______ _______ ___.
________ _____ ________ __________ ______.
______ ____ _________ ________ ___ ______ _________ _______ ____.
_____ _____ ______ ___ ___ _________ _____ __________ __________.
______ ________ __________ __________ _____ ____ _____ ______ __________.
___ _________ ___ _________ __________ ____ ______ _____.
______ ___ __________ ___ ____ _________ ______ _____ ___.
____ ___ __________ ______ _________ ______ __________.
_______ ________ ___ _______ __________.
___ _________ ________ ______ _________ _________ ______ _________ ________ ________ __________ __________.
_______ ___ ___ ___ _______ ___ _________ _______ _____ ___ __________ ______.
_____ ____ _________ __________ __________ ______ _________ ________ ______ _________ __________.
_________ ________ __________ __________ __________ _____ ______ _________ _______.
______ _________ _______ _________ ________ _________ ____ _________ ______.
______ __________ ______ _______ ___ ___ ___ ____.
____ _____ __________ __________ _____.
___ ____ _______ _________ ___ ______ _________ ___ ______ ________ _________ ______.
___ _________ _______ _______ _____.
_____ ________ _________ _______ _______ _________.
________ _________ _______ _______ ______ ____ __________ ___ _____.
_________ _________ _________ __________ __________.
_________ ______ _________ ___ ________ _________ ________ __________ ________ ___ ________ ____.
__________ ________ _______ _______ _____ _______ ______ ____.
___ _________ ____ __________ _____ _______.
_____ _______ ______ ______ _____ __________ _________ _____ ___ _______.
_________ _______ ____ _________ ________ ______ ______ _______.
_______ __________ __________ _________ ______ ____ ________ ______ __________ ________.
__________ _________ __________ _______ _____ ___ _________ ________.
_______ __________ ______ _______ _________ _______ __________ _________ ____ __________.
_________ ____ __________ ____ ______ ____ ______ ___ ____ ___ ________ ____.
_____ _________ ______ ________ ____ ____.
__________ ____ __________ ________ ________ ______ ________ ____ ________ ________.
_____ _______ _________ ___ __________ ________.
________ ____ _________ _______ _________ _______ _________ ______.
________ __________ ___ ___ ____ _______ ________ ___ _______ _________ ____.
_______ _________ _________ _____ ____ __________ _______ ___ ____ ______.
____ __________ ________ _____ ________ __________ ____ _______ _________ ______ ________ _____.
__________ ______ _______ _____ ________ ___ ___ ________ ______ _____ _________.
___ __________ __________ _______ ________ ______ ________ _______ ________.
__________ ___ __________ __________ ________ ____ __________ ______ _____ ___ _____ ___.
___ _________ _______ ________ _____ _________ ____ _________ _______.
___ _______ _________ ______ ______ ____ __________ ________ ________ ____ ___ ________.
________ _________ __________ _______ __________ ___ ____ ______.
_________ __________ _______ _________ _______.
______ ______ ____ ___ _________ _____ _____ ______.
__________ ______ ________ __________ _____ ______ _______ _____ ___ ___ _______ _____.
_______ ____ ____ ______ ____ _______.
___ ________ ___ __________ _______ __________ _________ _____ ______ ________ __________.
___ _________ ____ _____ ___ ________ ___ __________ _________.
__________ ______ ________ ______ ______ ___ ___ ______ ___ ______.
________ _______ ________ ______ ____ ____ _______ _____ _______ ____ ______.
________ ________ __________ ______ _______ _________ _______ ____ _____ __________ _____.
______ ________ ___ ______ ____.
________ _________ __________ ________ _________ __________ __________ _________ ______ __________.
_____ _________ _________ ______ ___.
____ _________ __________ _____ ________ ______ ___ ___ ____ _____ ______ ___.
______ _________ ______ _____ _________.
__________ _________ __________ ______ ___ ________ _________ ____ ________ ____ _____.
___ ____ ______ ______ ______ _________.
______ _________ _______ ______ ________.
______ __________ _______ ___ _______ _____ __________ _____ _____ ___ ________ ________.
_________ _______ ___ ____ _________ _____ __________ ________ ______ _________ ________.
__________ ____ _________ __________ ________ _______ ____ ____ ___ _____.
______ _________ ______ ____ ________ ________ __________ ________ _____ __________ __________ _______.
_________ _______ __________ ______ _____ _______ __________.
__________ ____ ____ _______ __________ ______ _____ _____ _____ _________ ________.
___ __________ _________ ____ __________ _______ _________.
___ _____ ___ ______ ________ _________ ______.
_______ _______ ___ _______ _________ ___ _____.
________ ________ ____ ____ _______ ___ __________ __________ ____.
________ ________ _____ _______ ____ _________ ______ ______ _______ _________ ____.
_________ ____ ____ __________ _______ ____ ____ ________.
_________ _____ ________ __________ _____ ___ _________.
___ _______ ________ ____ ________.
_______ ____ ___ ________ ______ _________ _________ ____ __________ __________ ______.
_________ ___ _________ ____ ________.
______ ______ ___ _______ ____ __________ ___ _____ ______ _____.
______ ____ __________ ____ ________ ________.
____ __________ ___ _____ ___.
________ _____ ____ _____ ______ _________ ____.
_____ ____ ________ ________ _________.
________ ____ ____ ________ ________ ______ ______.
__________ ______ ___ ___ _______ ________ ___ ______ ____ __________ ____.
__________ __________ __________ _______ ___ ______.
___ _____ _________ _____ ____ ______.
_________ __________ ____ ________ _________ ________ _________ _____ __________ __________ _______ _________.
______ ________ __________ ___ _______ ____ ________ ________ _________ ______.
_______.
Get Full Answer on WhatsApp