The profit center income statement should include only revenues and expenses that are controlled by the manager.

Question

Quizplus · Accepted Answer

The profit center income statement is a statement that shows the revenues, expenses, and profits of a particular profit center. The manager of a profit center is responsible for controlling the revenues and expenses that are associated with that center, and therefore, the profit center income statement should only include those revenues and expenses that are under the control of the manager. Any revenues or expenses that are outside of the manager's control should not be included in the profit center income statement.

The Profit Center Income Statement Should Include Only Revenues and Expenses