THE ROLE OF RESPONSIBILITY CENTERS IN THE OVERALL PERFORMANCE OF THE ENTITY
In a big, multi-productive company, spread upon a large geographical area, with advanced hierarchies and typical of modern business- a miniature economy, the managers must decide who inside the organization is responsible for making a certain decision and how this will be evaluated and rewarded. The central objective information and organizational planning is that of creating a balance between benefits and costs in making the decision, by a decentralized system.
cost- bearer, expense departments, responsibility centre, efficiency, efficaciousness, cost centers, centers for discretionary expenses, turnover centers, profit centers, responsibility centers.
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