Responsibility centres are organizational units or segments within an enterprise where a manager is assigned responsibility and authority for controlling specific activities and achieving predetermined objectives. The concept of responsibility centres is based on the principle of responsibility accounting, which aims to measure the performance of different parts of an organization by assigning responsibility to managers for the resources under their control. Every responsibility centre has a designated manager who is accountable for the performance of that unit. The purpose is to improve planning, control, performance evaluation, and decision-making by clearly defining responsibilities and delegating authority. In modern organizations, decentralization has become an essential management practice due to increasing business complexity, geographical expansion, and the need for quick decision-making. Responsibility centres support decentralization by dividing the organization into manageable units, each responsible for achieving specific goals. The performance of these centres is measured using financial and non-financial indicators according to the nature of responsibilities assigned. The establishment of responsibility centres is based on certain principles. There should be a clear definition of authority and responsibility. Each manager should have control over the resources and activities for which they are held accountable. Performance standards should be predetermined so that actual performance can be compared with expected performance. Regular reporting and evaluation should be carried out to identify deviations and take corrective actions. Effective communication and coordination among different responsibility centres are also essential for organizational success. Responsibility centres can be classified into four major types: cost centres, revenue centres, profit centres, and investment centres. A cost centre is a segment of an organization where the manager is responsible only for controlling costs. The manager is expected to ensure that operations are carried out efficiently while keeping expenses within budget. However, the manager is not directly responsible for generating revenue or profits. Cost centres are commonly found in production departments, maintenance units, research and development departments, human resource departments, accounting departments, and administrative offices. The primary objective of a cost centre is cost control and operational efficiency. Performance is evaluated by comparing actual costs with standard or budgeted costs. Variance analysis is used to identify differences and determine the reasons for deviations. Cost centres encourage managers to utilize resources economically, eliminate waste, improve productivity, and maintain quality standards. For example, the human resources department controls recruitment, training, employee welfare, and administrative expenses while supporting organizational goals. Cost centres may further be classified into engineered cost centres and discretionary cost centres. Engineered cost centres have a direct relationship between inputs and outputs, making it easier to establish performance standards. Manufacturing departments often fall under this category. Discretionary cost centres involve activities where outputs cannot be measured precisely, such as legal services, research, public relations, and employee development. Performance evaluation in discretionary cost centres is relatively subjective. A revenue centre is an organizational unit where the manager is responsible primarily for generating revenue without direct responsibility for controlling production costs or investments. Sales departments, regional marketing offices, and distribution branches are common examples of revenue centres. Managers focus on increasing sales volume, market share, customer acquisition, and customer satisfaction. The performance of a revenue centre is measured through sales revenue, sales growth, market penetration, number of customers served, sales targets achieved, and customer retention. Although managers influence selling expenses, they generally do not control production costs or capital investment decisions. Revenue centres encourage