The Performance Report for Which of the Following Responsibility Centres

question 14

Multiple Choice

The performance report for which of the following responsibility centres would typically include revenues and costs?

• A) Cost centre
• B) Sales centre
• C) Revenue centre
• D) Profit centre

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because another party bears the consequences.

Incentives

Rewards or penalties that motivate individuals or entities to act in certain ways.

Hazardous Jobs

Occupations that pose significant risks of injury, illness, or death as a result of the work environment or tasks involved.

Moral Hazard

A situation where one party is more likely to take risks because the consequences of their actions are partly borne by others.