What are the three types of responsibility centers? Explain how each differs from the others.

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David · Accepted Answer

Responsibility centers are identifiable segments of a 
company for which a manager has authority and 
responsibility. It can define what exactly what assets and 
activities each manager is responsible for.  
The three responsibility centers are: 
Cost center 
Profit center  
Revenue center 
 
Cost centers usually produce goods or services and have no 
control to manipulate the sales price.

What are the three types of responsibility centers? Explain how each differs from the others.

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