Question

The budgetary unit of an organization that is led by a manager who has both the authority over and responsibility for the unit's performance is known as a a.budgetary area b.responsibility center c.control center d.managerial department

Answer 1

Answer:

b.responsibility center

Explanation:

Responsibility centers are identifiable segments within a company for which individual managers have accepted authority and accountability. Responsibility centers define exactly what assets and activities each manager is responsible for.

Managers prepare a responsibility report to evaluate the performance of each responsibility center. This report compares the responsibility center’s budgeted performance with its actual performance, measuring and interpreting individual variances.