The Responsibility Report for a Profit Center Would Compare ________

question 211

Multiple Choice

The responsibility report for a profit center would compare ________.

• A) actual costs to budgeted costs
• B) actual revenues to budgeted revenues
• C) actual revenues and costs to budgeted revenues and costs
• D) actual profits to budgeted profits

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Definitions:

Target

In the business context, it generally refers to a specific objective or goal that a company or individual aims to achieve.

Operating Costs

Operating costs, or operating expenses, are the costs required for the day-to-day maintenance and administration of a business.

Financial Position

The status of a company or individual's assets, liabilities, and equity at a specific point in time, summarizing the economic resources and obligations.

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profitability that excludes interest and income tax expenses.