Question
Chardon had the following financial results for last month. One store Actual Flexible Budget Flexible Budget Variance (U or F) % of Variance (U or
Chardon had the following financial results for last month.
One store
Actual
Flexible
Budget
Flexible Budget Variance
(U or F)
% of Variance (U or F)
Revenues
$220,000
$200,000
$20,000 F
10.00% F
Operating Expenses
80,000
70,000
10,000 U
14.29% U
Income from operations before service dept. charges
140,000
130,000
10,000 F
7.69% F
Service department charges
40,000
40,000
0
0
Income from operations
100,000
90,000
10,000 F
11.11% F
Which one of the following responsibility centre types does the financial results reflect?
A.
Revenue centre
B.
Profit centre
C.
Investment centre
D.
Cost centre
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