Know- More

COMMERCE PAPER No.6 : ACCOUNTING FOR MANAGERIAL DECISIONS

MODULE No.6 : RESPONSIBILITY CENTERS-OBJECTIVES AND
DETERMINANTS
 Web links
 https://www.scribd.com/doc/106021488/Responsibility-Centres
 www2.gsu.edu/~accrss/RespCenters_Chp4.ppt
 docslide.us › Documents
 seap.usv.ro/annals/ojs/index.php/annals/article/viewFile/48/47
 www.kanpuruniversity.org/syllabus/mba_mfc.pdf

Suggested Readings

 Hill, Gregory. "a guide to enterprise reporting’

 Blicq, Ronald (2003). "Technically-Write!". Prentice Hall
 Gerson, Sharon and Gerson, Steven (2005). Technical Writing: Process and Product.
Prentice Hall

 Lannon, John (2007). Technical Communication. Longman

COMMERCE PAPER No.6 : ACCOUNTING FOR MANAGERIAL DECISIONS

MODULE No.6 : RESPONSIBILITY CENTERS-OBJECTIVES AND
DETERMINANTS
 CASE STUDY:

In the growing literature on the entrepreneurial university, the divergent attitudes between
industry and academy are often put forth as a major obstacle to more fruitful collaborations.
This paper presents a study of a major Scandinavian technical university (referred to with the
pseudonym UniTech), suggesting that the organization of such collaborations is perhaps a more
substantial challenge for the entrepreneurial university. Drawing on a body of literature that
addresses bureaucratic and post-bureaucratic organization forms, it is suggested that the
entrepreneurial university could emerge as a soft bureaucracy, that is, a hybrid organization
form comprising both bureaucratic and post-bureaucratic elements. While the soft bureaucracy
organization form offers distinct opportunities, it also demands the sacrificing of some
bureaucratic features such as full transparency and the predictability of operations. As a
consequence, the entrepreneurial university needs to institute a number of mechanisms and
procedures that structure and guide its day-to-day work, and nourish an attitude whereby a
certain degree of ambiguity can be tolerated.

Source: http://www.sciencedirect.com/science/article/pii/S0956522109000931

Interesting Facts
A responsibility centre is a part or subunit of a company for which a manager has authority
and responsibility. The company's detailed organization chart is a logical source for
determining responsibility centres. The most common responsibility centre’s are the
departments within a company.

When the manager of a responsibility centre can control only costs, the responsibility centre
is referred to as a cost centre. If a manager can control both costs and revenues, the
responsibility centre is known as a profit centre. If a manager has authority and responsibility
for costs, revenues, and investments the responsibility centre is referred to as an investment
centre.

COMMERCE PAPER No.6 : ACCOUNTING FOR MANAGERIAL DECISIONS

MODULE No.6 : RESPONSIBILITY CENTERS-OBJECTIVES AND
DETERMINANTS