A Profit Center Responsibility Report ________

question 134

Multiple Choice

A profit center responsibility report ________.

• A) should not include costs for which the profit center manager is not accountable
• B) does not include revenues since that information only appears on the revenue center responsibility report
• C) includes traceable fixed expenses
• D) is the same as a performance report

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Definitions:

Risk Level

The degree of uncertainty associated with the returns on an investment, reflecting the potential for losses or lesser gains.

Cost of Equity

The return that shareholders require for investing in a company's equity, serving as a measure of the risk involved.

Preferred Stock

Stock with dividend priority over common stock, normally with a fixed dividend rate, often without voting rights.

Common Stock Dividends

Dividends that are paid to holders of a company's common stock, often from the company's profits.