Which of the following would be considered to be responsibility of manager of profit centre?
1) direct labour
2) variable production OH
3) imputed interest on capital investment
4) depreciation of machinery
I think answer is 1 and 2
But not sure that what departments manager is responsible for other 2 option . Please explain
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Responsibility centres
It is head office who will decide on the imputed interest and on the method of depreciation.
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