identify each responsibility center as a cost center, revenue center, profit cen
ID: 2350783 • Letter: I
Question
identify each responsibility center as a cost center, revenue center, profit center or investment centera. the bakery dept. of a Publix supermarket reports income for the current year
b. pace foods is a subsidiary of campbell soup company
c. the personnel dept. of state farm insurance companies prepares its budget and subsequent performance report on the basis of its expected expenses for the year
d. the shopping section of burpee.com reports both revenues and expenses
e. burpee.com's investor relations website provides operating and financial information to investors and other interested parties
f. the manager of a BP service station is evaluated based on the station's revenues and expenses
g. a charter airline records revenues and expenses for each airplane each month. each airplane's performance report shows its ratio of operating income to average book value
h. the manager of the southwest sales territory is evaluated based on a comparison of current period sales against budgeted sales
Explanation / Answer
Profit center: A Profit center is a sabunit that has responsibility for generating revenues as well as for controlling costs. Cost center: A cost center is a sabunit that has responsibility for controlling costs,but does not have responsibility for generating revenues. most of the service departments are costcenters. Investment center: An investment center is a sabunit that is responsible for generating revenue, controlling costs and investing in assets. the division which can influence the decision to invest in division assets can be classified as investment center. a. Cost center. as it is a servicecenter b. Cost center. as it is a servicecenter c. Investment center. as it has the authority to recruit personnel. d. Profit center. as it has the responsibility for controlling costs as well as generating revenues. e. Cost center. as it is a service center f. Investment center. as it is responsible for generating revenues, controlling costs, and investing in asets. g. Investment center.as it is responsible for generating revenues, controlling costs, and investing in asets. h. Investment center. An investment center is a sabunit that is responsible for generating revenue, controlling costs and investing in assets. the division which can influence the decision to invest in division assets can be classified as investment center. a. Cost center. as it is a servicecenter b. Cost center. as it is a servicecenter c. Investment center. as it has the authority to recruit personnel. d. Profit center. as it has the responsibility for controlling costs as well as generating revenues. e. Cost center. as it is a service center f. Investment center. as it is responsible for generating revenues, controlling costs, and investing in asets. g. Investment center.as it is responsible for generating revenues, controlling costs, and investing in asets. h. Investment center.Related Questions
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