The profit center income statement should include only those revenues and expenses that can be controlled by the manager.

Question

Quizplus · Accepted Answer

The profit center income statement measures the performance of a specific business unit, and therefore, it should only include revenues and expenses that are under the control of the manager of that unit. This includes revenues generated by the unit's sales efforts and expenses related to its operations and management. Expenses that are not controllable by the manager, such as corporate overhead expenses or interest expenses, should be excluded.

The Profit Center Income Statement Should Include Only Those Revenues