Question

Identify each responsibility center as a cost center, a revenue center, a profit center, or an investment center.
a. Walt Disney Company’s investor relations website provides operating and financial information to investors and other interested parties.
b. The manager of the Circle K located on Gilbert Road in Chandler, Arizona, is ­evaluated based on the station’s revenues and expenses.
c. A charter airline records revenues and expenses for each airplane each month. Each airplane’s performance report shows its ratio of operating income to average book value.
d. The manager of the midwestern sales territory is evaluated based on a comparison of current period sales against budgeted sales.
e. The Floral Department of a Safeway grocery store reports income for the current year.
f. Speedway is a subsidiary of Marathon Oil Corporation; Speedway owns and operates approximately 1,350 gasoline and convenience stores in the United States.
g. The Legal Department of the Progressive Group of Insurance Companies prepares its budget and subsequent performance report on the basis of its expected expenses for the year.
h. The online division of Claire’s Stores, Inc., reports both revenues and expenses.



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  • CreatedAugust 27, 2014
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