Chapter 6, Problem 6.39P

To determine

Responsibility Center:

The responsibility center is the specific center in which each work is different and the manager responsible for it has to perform only that set of specific activity. The responsibility center becomes broader with the higher manager level and the number of subordinates increases.

To explain: The responsibility for the cost of biscuits, the level at which the cost is controllable, whether the owner should be angry with the purchasing agent and the reason for it.