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MANAGEMENT AND ACCOUNTING WEB |
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CHAPTER 9 Supplemental Exhibit - Responsibility Accounting |
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Responsibility Centers |
Evaluation Method |
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1) Revenue centers |
Sales - (See Profit Analysis Main Page) |
| 2) Cost centers | Cost - (See Variance Analysis Main Page) |
| 3) Profit centers | Profitability measure - (See Performance Measures Main Page) |
4) Investment centers |
Return on investment* - (See ROI Main Page) |
*Typically ROI = Net income ÷ Total assets
| MAAW's Chapter 9 | Responsibility Accounting Concept | Responsibility Accounting Summary |
