Responsibility accounting for a profit center focuses on reporting:
A) the controllable revenues only.
B) controllable revenues, controllable expenses, and controllable profits.
C) controllable revenues, controllable expenses, controllable profits, and investment in assets controlled by the manager of the center.
D) controllable expenses, and controllable profits, but not controllable revenues.

Question

Quizplus · Accepted Answer

Responsibility accounting for a profit center focuses on reporting controllable revenues, controllable expenses, and controllable profits. This is because the manager of a profit center has direct control over the revenue and expenses of the center and is responsible for generating a profit. However, investment in assets controlled by the manager of the center is not always considered as controllable by the manager, and may not be included in responsibility accounting reporting.

Responsibility Accounting for a Profit Center Focuses on Reporting