Final answer:
A responsibility center is a subunit within an organization that has its own manager and is responsible for specific tasks and outcomes. It can be a cost center, revenue center, profit center, or investment center.
Step-by-step explanation:
A responsibility center is a subunit within an organization that has its own manager and is responsible for specific tasks and outcomes. It is a way to decentralize decision-making and hold individuals accountable for their performance. There are different types of responsibility centers, such as cost centers, revenue centers, profit centers, and investment centers.
For example, a cost center is responsible for controlling and tracking costs, such as a department within a company that focuses on reducing expenses. A revenue center is responsible for generating sales or revenue, such as a sales team. A profit center is responsible for generating both revenue and managing costs so that it can achieve a profit.