Responsibility center

How do responsibility reports promote the management by exception doctrine?

What is a responsibility center?

What are the three types of responsibility centers? Explain how each differs from the others.

Carmen Douglas claims that her com- pany���s performance evaluation system is unfair. Her company uses return on in- vestment (ROI) to evaluate performance. Ms. Douglas says that even though her ROI is lower than another manager���s, her performance is far superior. Is it possible that Ms. Douglas is correct? Explain your position.

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