Corbin Company had the following financial results for last month. What type of

Question

Corbin Company had the following financial results for last month. What type of responsibility center do these financial results reflect? Flex e Budget Variance % of Variance (U or F) (U or F) ActualFlexible Budget $200,000 70,000 One store $20,000 F 10.00% F $220,000 80,000 Revenues Operating Expenses Income from operations before service dept. charges Service department charges Income from operations 10,000 U 10,000 F 10,000 F 14.29% U 7.69% F 11.11% F 140,000 40,000 100,000 130,000 40,000 90,000 OA. Profit center O B. Investment center C. Revenue center O D. Cost center

Explanation / Answer

answer is cost center or expenses center because when we compare only expenses budgeted vs actual then it is un favorable variance. in expenses center they do not see about output or revenue. so cost center is affects.

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