Selle Had the Following Financial Results for Last Month A)Revenue Center
B)Profit Center
C)Investment Center
D)Cost Center

question 139

Multiple Choice

Selle had the following financial results for last month.What type of responsibility center do these results reflect?
$\begin{array}{|l|r|r|r|r|r|}\hline\text { Selle Co.- }\\ \text { Subunit X } & & \text { Flexible } & & \text { Sales } & \text { Static }\\\text { Revenue by } && \text { Budget } & \text { Flexible } & \text { Volume } & \text { (Master) }\\ \text { Product } & \text { Actual } & \text { Variance } & \text { Budget } & \text { Variance } & \text { Budget }\\\hline \text { WD-40 } & \$ 630,000 & \$ 10,000 \mathrm{~F} & \$ 620,000 & \$ 20,000 \mathrm{~F} & \$ 600,000 \\\hline \text { WD-60 } & 520,000 & 30,000 \mathrm{U} & 550,000 & 40,000 \mathrm{~F} & 510,000 \\\hline \text { WD-80 } & 125,000 & 5,000 \mathrm{U} & 130,000 & 10,000 \mathrm{U} & 140,000 \\\hline \text { QD-40 } & 225,000 & 25,000 \mathrm{~F} & 200,000 & 40,000 \mathrm{U} & 240,000 \\\hline \text { QD-60 } & 425,000 & 5,000 \mathrm{~F} & 420,000 & 20,000 \mathrm{~F} & 400,000 \\\hline \text { Total } & \$ 1.925 .000 & \$ 5.000 \mathrm{~F} & \$ 1.920,000 & \$ 30.000 \mathrm{~F} & \$ 1.890 .000 \\\hline\end{array}$

• A)Revenue center
• B)Profit center
• C)Investment center
• D)Cost center

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Definitions:

LIFO Method

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities within their jurisdiction.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profitability of a company's core business activities.

Inventory

The total amount of goods and materials held by a company, intended for sale or used in the production of goods to be sold.