E23-7 Identify each responsibility center as a cost center, a revenue center, a profit center, or an investment center.

a. The bakery department of a Kroger supermarket reports income for the current year.

b. Netscape Communication is a subsidiary of America Online, Inc.

c. A personnel department of State Farm Insurance Companies prepares its budget and subsequent performance report on the basis of its expected expenses for the year.

d. The shopping section of Garden.com reports both revenues and expenses.

e. Garden.com's investor relations Web site provides operating and financial information to investors and other interested parties.

f. The manager of a BP service station is evaluated based on the station's revenues and expenses. g. A charter airline records revenues and expenses for each airplane each month. The air- plane's performance report shows its ratio of operating income to average book value. h. The manager of the southwest sales territory is evaluated based on a comparison of cur- rent period sales against budgeted sales.