Which of the following responsibility centers will use a segmented income statement as an evaluation tool?
cost center
revenue center
profit center
Which of the following statements follows from the controllability principle?
A profit center manager should be evaluated based on residual income, not return on investment.
An investment center manager should be evaluated based on return on investment, not residual income.
A profit center manager should be evaluated based on segment margin, not profit margin.
A cost center manager should be evaluated on costs and revenues, not just costs.
balanced center