Discussion
Which of the following is not a responsibility centre ?
Answer: D
The one that is not a responsibility centre is the control centre.
Responsibility accounting divides an organisation into centres according to what a manager is held responsible for. A cost or expense centre is answerable for costs; a revenue centre for revenue; a profit centre for both, and so for profit; an investment centre for profit in relation to the capital employed, measured by return on investment or residual income.
Expense, profit and investment centres are therefore all standard responsibility centres. Every responsibility centre is a unit of control, but 'control centre' is not one of the types, which makes it the answer.
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