Responsibility accounting reports for a profit center typically show:
A)revenues,expenses,and profit controlled by the manager of the center.
B)only the controllable revenues.
C)revenues,expenses,profit,and investment in assets controlled by the manager of the center.
D)all the investment in assets controlled by the manager of the center.

Question

Quizplus · Accepted Answer

Responsibility accounting reports for a profit center typically show revenues, expenses, and profit controlled by the manager of the center. This is because the profit center manager is responsible for the performance of the center in terms of generating revenues, controlling expenses, and ultimately, achieving a profit. The manager may not have control over the investment in assets, which is typically handled by corporate management or a separate capital budgeting process. Therefore, option A is the best choice. Option B is not correct because responsibility accounting reports should include both controllable and non-controllable revenues. Option C is not entirely accurate because investment in assets may not be under the control of the profit center manager, and therefore should not be included in their report. Option D is not correct because it suggests that all investment in assets is under the control of the manager, which may not be the case.

Responsibility Accounting Reports for a Profit Center Typically Show