Which of the following responsibility centers use a performance report that compares only actual revenues and budgeted revenues?
A)Cost center
B)Revenue center
C)Investment center
D)All of the above

Question

Quizplus · Accepted Answer

A revenue center is responsible for generating revenue, and therefore its performance report would focus on actual revenues compared to budgeted revenues. Cost centers are responsible for controlling costs, and investment centers are responsible for both generating revenue and managing costs, so their performance reports would include comparisons of both actual revenues and actual costs to their respective budgets.

Which of the Following Responsibility Centers Use a Performance Report