$3$ Knowledge Review

$23\mathrm{.}3$ Responsibility Accounting and Responsibility Centers

Fleetroot Travels provides charters for private$-$group travel to exotic destinations. The company's aircraft and ships operate around the world. Fleetroot's marketing department determines the pricing of tours and charter rates and is responsible for all advertising. It also forecasts future demand, and Fleetroot's operating units rely on these forecasts to make strategic decisions about capacity creation. The marketing department is best regarded as a$($n$)$ center.

cost

market responsibility

profit

investment