Responsibility Centers - Decentralization

The video tutorial explains the concept of responsibility centers, which are independent units within an organization accountable for specific outputs. It discusses various types of responsibility centers, such as revenue-focused, cost-driven, profit-focused, and investment centers. The tutorial also covers decentralization, highlighting how it grants managers greater autonomy in decision-making, allowing them to control their segments effectively and meet organizational goals.

Explain the relationship between revenue generation and cost management in responsibility centers.

What is the significance of empowering managers in a decentralized organization?