Question

Responsibility does not have the following as Control Centre:

• A. Revenue Centre
• B. Cost Centre
• C. Profit Centre
• D. Information Centre

Hint:

Responsibility centres must involve measurable financial accountability—information centres do not.

Answer 1

The Correct Option is D

Step 1: Understanding responsibility centres.
Responsibility centres are organisational units where managers are responsible for specific performance areas. These centres are classified into Revenue Centres, Cost Centres, Profit Centres, and Investment Centres. Each type measures performance differently, depending on what the manager controls.
Step 2: Evaluating the given options.
(a) Revenue Centre: Manager is responsible only for generating revenue. This is a valid responsibility centre.
(b) Cost Centre: Manager controls costs but not revenues. This also qualifies as a responsibility centre.
(c) Profit Centre: Manager controls both costs and revenues and is responsible for profits. This is definitely a responsibility centre.
(d) Information Centre: This is not considered a responsibility centre because it does not directly control revenue, cost, or profit elements. It mainly provides data or support, not performance accountability.
Step 3: Conclusion.
Since Information Centre is not recognised as a responsibility centre, option (d) is correct.