Question

Identify each responsibility centre below as a cost centre, a revenue centre, a profit centre, or an investment centre.
a. The Bakery Department of a Sobey’s supermarket reports income for the current year.
b. Pace Foods is a subsidiary of Campbell Soup Company.
c. The Personnel Department of RBC Insurance prepares its budget and subsequent per- formance report on the basis of its expected expenses for the year.
d. The Shopping Section Burpee.com reports both revenues and expenses.
e. Burpee.com’s investor relations website provides operating and financial information to investors and other interested parties.
f. The manager of an Irving Oil 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. Each air- plane’s performance report shows its ratio of operating income to average book value.
h. The manager of the Maritimes sales territory is evaluated based on a comparison of cur- rent period sales against budgeted sales.


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  • CreatedApril 30, 2015
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