Which of the following responsibility centres use a performance report that compares only actual revenues and budgeted revenues?
A) Cost centre
B) Revenue centre
C) Investment centre
D) Profit centre

Question

Quizplus · Accepted Answer

Revenue centres are responsible for generating revenue for the organization. Therefore, a performance report that compares only actual revenues and budgeted revenues is most appropriate for this type of centre. Cost centres are responsible for controlling costs, investment centres are responsible for generating returns on investments, and profit centres are responsible for both generating revenue and controlling costs. These centres would require a more comprehensive performance report.

Which of the Following Responsibility Centres Use a Performance Report