Which of the following responsibility centers will use a segmented income statement as an evaluation tool?
A)cost center
B)revenue center
C)profit center
D)balanced center

Question

Quizplus · Accepted Answer

A profit center is responsible for both generating revenue and controlling costs, therefore they would use a segmented income statement to evaluate the financial performance of each revenue and cost component of the center. Cost centers are responsible for controlling costs only, revenue centers are responsible for generating revenue only, and balanced centers are responsible for a combination of both generating revenue and controlling costs, but not to the extent of a profit center.

Which of the Following Responsibility Centers Will Use a Segmented