Responsibility center

A responsibility center is an organizational unit headed by a manager, who is responsible for its activities and results.[1] In responsibility accounting, revenues and cost information are collected and reported on by responsibility centers.[2]

Typical examples of responsibility centers are the profit center[3] and the cost center.

References

Anthony, R.. The Management Control Function, Boston, HBS, 1988, p.64.
Jae K. Shim; Joel G. Siegel, Budgeting Basics and Beyond, John Wiley & Sons, ISBN 978-0-470-38968-3
Melumad, Nahum, Dilip Mookherjee, and Stefan Reichelstein. "A theory of responsibility centers." Journal of Accounting and Economics 15.4 (1992): 445-484.

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[1] Anthony, R.. The Management Control Function, Boston, HBS, 1988, p.64.

[2] Jae K. Shim; Joel G. Siegel, Budgeting Basics and Beyond, John Wiley & Sons, ISBN 978-0-470-38968-3

[3] Melumad, Nahum, Dilip Mookherjee, and Stefan Reichelstein. "A theory of responsibility centers." Journal of Accounting and Economics 15.4 (1992): 445-484.