A responsibility center is an organizational unit headed by a manager who is responsible for its activities and outputs. The objective is to help implement strategies set by senior management. Responsibility centers can be measured based on efficiency, which is the ratio of outputs to inputs, and effectiveness, which is determined by the relationship between a center's output and its objectives. Common types of responsibility centers include revenue centers, expense centers, administrative centers, and research and development centers, which differ in how inputs and outputs are defined and measured. Responsibility budgeting involves allocating financial resources to each center for the budget period using methods like incremental budgeting or zero-based budgeting.