a. The bakery department of an Albertson’s supermarket reports income for the current year.

b. Pace Foods is a subsidiary of Campbell Soup Company.

c. The personnel department of USAA Life Insurance Company prepares its budget and subsequent performance report on the basis of its expected expenses for the year.

d. The shopping section of Burpee.com reports both revenues and expenses.

e. Burpee.com’s investor relations Web site provides operating and financial information to investors and other interested parties.

f. The manager of a car 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.

The airplane’s performance report shows its ratio of operating income to average book value.

h. The manager of the Southwest sales territory is evaluated based on a comparison of current period sales against budgeted sales.


1. Identify each responsibility center as a cost center (C), a revenue center (R), a profit center (P), or an investment center (I). (pp. 1121–1122) Identifying different types of responsibility centers