Asked by
Aleksandra Pachebut
on Nov 13, 2024Verified
A responsibility report for a profit center will
A) not show controllable fixed costs.
B) not show indirect fixed costs.
C) show noncontrollable fixed costs.
D) not show cumulative year-to-date results.
Profit Center
A branch or division of a company that is treated as a separate unit for the purpose of assessing its profitability.
Responsibility Report
Financial reports that track the performance of segments, departments, or managers within an organization against their budgeted or forecasted figures.
Controllable Fixed Costs
Expenses that remain constant for a given period but can be influenced or managed by decisions of a company's management.
- Recognize and define the several kinds of responsibility centers (cost, profit, investment) and their respective characteristics.
- Become familiar with the linkage between responsibility accounting, controllable margins, and the scrutiny of performance outcomes.
Verified Answer
MU
Learning Objectives
- Recognize and define the several kinds of responsibility centers (cost, profit, investment) and their respective characteristics.
- Become familiar with the linkage between responsibility accounting, controllable margins, and the scrutiny of performance outcomes.