Responsibility centres
Taught by Nick Drape · AI tutor support included
In this lesson, you'll learn how organisations structure themselves into responsibility centres and why this matters for performance management and your PM exam.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Introduction to responsibility centres
- 0:39 Four types of responsibility centres explained
- 2:26 Performance indicators for each centre type
- 4:57 Revenue and profit centre assessment
- 6:01 Investment centre metrics and measures
About this lesson
You'll explore the four main types—cost centres, revenue centres, profit centres, and investment centres—and discover which financial performance indicators apply to each. Through practical examples from manufacturing businesses, you'll see how managers are assessed using metrics like material usage, labour efficiency, selling prices, profit margins, and return on investment, giving you the tools to evaluate divisional performance in real business scenarios.
Duration: 8m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the P2 Objective Test course
All 121 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in