Question

Profit center responsibility reports include ________.

A) revenues only
B) invested capital
C) both revenues and expenses
D) returns on investments

Answer 1

Profit center responsibility reports include both revenues and expenses.

Step-by-step explanation:

Profit center responsibility reports include both revenues and expenses.

The purpose of profit center responsibility reports is to provide information on the financial performance and accountability of a profit center within an organization. These reports typically include both revenues and expenses to give a comprehensive picture of the center's profitability.

By including both revenues and expenses, profit center responsibility reports help managers assess the effectiveness of their cost control measures, evaluate the revenue-generating activities, and make informed decisions to improve overall profitability.