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sir, I am going through the Kaplan exam kit and within the first chapter, there is a question
The following statements relate to responsibility centres:
(i) Return on capital employed is a suitable measure of performance in both profit and
investment centres.
(ii) Cost centres are found in manufacturing organisations but not in service organisations.
(iii) The manager of a revenue centre is responsible for both sales and costs in a part of an
organisation.
Which of the statements are incorrect?this responsibility centre is not given in notes and it’s only given in the book. you said just go with notes and exam kit. what to do
This question is covering several topics from the syllabus.
Everything in the question is explained in the lecture notes and the lectures that go with them (I have never said ‘just go with the notes’ because there is no point in using the notes without watching the lectures that go with them – the lectures explain and expand in the notes).
There is not really much point in using the Exam Kit until you have studied everything first. The Exam Kit is for revision and practice.
yes, sir I absolutely agree with you. but I watched the lectures and there was no mentioned of the responsibility centres investment centres revenue centres. this thing puzzling me
But the question explains itself.
for (iii) revenue means sales, and so if the manager is responsible for the revenue then he/she is responsible for the sales and not the costs.
for (ii) cost centres occur in both manufacturing and service organisations
yes, sir, it’s just a few days back read some post in management accounting ask tutor forum and in that student was asking which study material he should opt for and will he be requiring both text and exam kit, in that you replied notes are sufficient you just need exam kit for practice with notes.
so I had a doubt that this will come in the exam as you said in that post notes are fine just get exam kit also for practice. but now it’s given in both exam and study kit
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