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CIMA Advanced Management Accounting P2 Question # 59 Topic 6 Discussion

CIMA Advanced Management Accounting P2 Question # 59 Topic 6 Discussion

P2 Exam Topic 6 Question 59 Discussion:
Question #: 59
Topic #: 6

Which of the following statements are correct with regard to responsibility centres?

Select ALL that apply.


A.

Revenue centre managers have a lower level of decision-making authority than profit centre managers.


B.

Revenue centre managers and profit centre managers are accountable for controllable costs only.


C.

Profit centre managers and investment centre managers are responsible for the majority of operating costs incurred.


D.

Investment centre managers have a higher level of managerial authority than profit centre managers.


E.

Managers of profit centres have authority over the level of investment in working capital but managers of cost centres do not.


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