Responsibility reports for a profit center includes:
A)revenues only.
B)invested capital.
C)both revenues and costs.
D)returns on investments.

Question

Quizplus · Accepted Answer

Responsibility reports for a profit center should include both revenues and costs in order to evaluate the profitability of the center. Revenues alone do not give a complete picture as it does not take into account the cost of generating those revenues. Additionally, returns on investments and invested capital may be included in the report but are not as necessary as revenues and costs.

Responsibility Reports for a Profit Center Includes