The responsibility report for a profit center would compare ________.
A) actual costs to budgeted costs
B) actual revenues to budgeted revenues
C) actual revenues and costs to budgeted revenues and costs
D) actual profits to budgeted profits

Question

Quizplus · Accepted Answer

The responsibility report for a profit center should compare both actual revenues and costs to budgeted revenues and costs to assess the performance of the center in generating profits. Simply comparing costs or revenues alone would not provide a complete picture of the center's performance, and comparing profits alone would not reveal the factors contributing to any deviations from the budget. Therefore, C is the best choice.

The Responsibility Report for a Profit Center Would Compare ________