Performance reports should include
A)all costs and revenues for a specific responsibility center.
B)all costs,revenues,and resources for a specific responsibility center.
C)noncontrollable costs for a specific responsibility center.
D)controllable costs,revenues,and resources for a specific responsibility center.

Question

Quizplus · Accepted Answer

Performance reports should include controllable costs, revenues, and resources for a specific responsibility center in order to evaluate the effectiveness of the center's management in utilizing its resources to achieve its goals. Non-controllable costs may mask the performance of the center and can be influenced by external factors beyond the responsibility center's control, thus limiting the usefulness of these data in evaluating the center's performance.

Performance Reports Should Include