ACC 312 Lecture Notes - Lecture 13: Negative Number, Asset Turnover, Current Liability
Document Summary
In chapter 12, we identified four types of responsibility centers: cost center a cost center manager is held responsible only for costs (not revenues or investments) Their goal is to minimize costs and waste, while accomplishing their department"s organizational functions at a specified level of performance: revenue center a revenue center manager is held responsible for the revenue generated by the subunit. Their goal is to maximize revenue through increasing the quantity of the goods or services sold and/or the price of the goods or services sold: profit center a profit center manager is held responsible for profit. Their goal is to maximize revenues and minimize costs: investment center responsible for profits and investments to earn that profit. Rois, or put capital invested by owners & shareholders of the org to the most profitable use. As the ceo of a company, how do you know if:
