Question
Match the appropriate definition (a) through (f) with the following terms: (a) A department whose manager is evaluated based on their success in generating income.
Match the appropriate definition (a) through (f) with the following terms: (a) A department whose manager is evaluated based on their success in generating income. (b) A department or unit that generates revenues and incurs costs, and whose manager is responsible for the investments made in its operating assets. (c) Evaluates unit managers only on activities that they can control. (d) Lists actual costs that a manager is responsible for and their budgeted amounts. (e) A department whose manager is evaluated on their success in controlling actual costs as compared to budgeted costs. (f) A measure of departmental sales minus cost of goods sold and direct expenses. ___ (1) Investment center ___ (2) Responsibility accounting performance report ___ (3) Cost center ___ (4) Departmental contribution to overhead ___ (5) Profit center ___ (6) Responsibility accounting
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