Discussion
The marketing manager of a product line is the example of .............
Answer: B
The marketing manager of a product line is an example of a revenue centre.
In responsibility accounting, a revenue centre is a unit whose manager is held accountable mainly for generating sales revenue, with little control over the cost of making the product or the capital invested in it. A marketing or sales manager for a product line, judged on the sales achieved, is the classic example.
A cost centre manager is answerable for costs, such as a production shop. A profit centre manager controls both revenue and costs, as in a self-contained division. An investment centre manager is responsible for profit and the capital employed. A marketing manager who controls revenue but not production cost or investment fits none of these.
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