The profit center income statement should include only controllable revenues and expenses.

Question

Quizplus · Accepted Answer

The profit center income statement should only include revenues and expenses that the manager of the profit center can control. Such expenses are referred to as controllable directly by the profit center manager. This statement helps in evaluating the effectiveness of the manager in managing the revenue and expenses of the profit center.

The Profit Center Income Statement Should Include Only Controllable Revenues