A responsibility income statement generally does not show the:
A)Contribution margin of each responsibility center.
B)Traceable fixed costs allocated to each responsibility center.
C)Segment margin of each responsibility center.
D)Net income of each responsibility center.

Question

Quizplus · Accepted Answer

A responsibility income statement is used to analyze the profitability of different segments or responsibility centers within an organization. It typically shows the contribution margin and traceable fixed costs allocated to each responsibility center, as well as the segment margin, which represents the profit or loss of each center before common costs are allocated. However, the responsibility income statement does not show the net income of each responsibility center, as this information would be included in the overall income statement of the organization.

A Responsibility Income Statement Generally Does Not Show The