Answered! Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager's…

 Responsibility centers define exactly what assets and activities each manager is responsible for.Revenue centers usually have authority over sales only and have very little control over costs and evaluations are based entirely on sales.For evaluation of performance of the manager revenue figure is examined.In cost centers it only produce goods or provide services to other parts of the company.Quality of the goods should be moniter because they can procure inferior goods.On the basis of total sales performance can be evaluated.In profit centers managers enjoy control over their own revenues and expenses. They often select the merchandise to buy and sell, and they have the power to set their own prices. Evaluation can be based on controllable margins.