Which one of the following statements about a profit centre responsibility report is correct?
A)It shows budgeted and actual controllable revenues and costs.
B)Non-controllable fixed costs are reported.
C)It provides the same information as a cost centre responsibility report.
D)All fixed costs are deducted from controllable margin.

Question

Quizplus · Accepted Answer

A profit centre responsibility report shows both budgeted and actual controllable revenues and costs, allowing for a comparison of performance. Non-controllable fixed costs are not reported, and the report differs from a cost centre responsibility report in that it also includes information on revenues. Fixed costs are deducted only from the overall profit figure, not from controllable margin.

Which One of the Following Statements About a Profit Centre