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:

Variable Costs

Expenditures that change in direct response to production volumes, such as direct labor and raw materials.

Variable Food Costs

Variable food costs change with the level of production or sales, such as the cost of ingredients for a restaurant.

Performance Evaluation

The process of assessing the efficiency and effectiveness of employees, departments, or organizations, often for the purpose of making decisions related to promotions, compensations, and training.

Other Departments

A general term that refers to various separate units or divisions within a company, each responsible for specific functions or operations not specified by previous terms.