A Responsibility Report for a Profit Center Will

question 92

Multiple Choice

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.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Fair Value

The estimated market price of an asset or liability in an orderly transaction between market participants at the measurement date.

Partial Equity Method

An accounting approach used when a company holds a significant influence, but not control, over an investee, recognizing a portion of the investee's income proportional to ownership stake.

Equipment Account

An account on the balance sheet representing the cost of equipment a company owns.