Using the figures below for each performance center, comparing 2005 actual results with the budgeted results.
Using the four responsibility centers of cost, revenue, profit, and investment:
What cost measurements are used for each of these centers?
Which centers performed better than budget, and which performed worse than budget?
What are the main causes for the performance of each center?
Here are the performance numbers for each workcenter.
Center Actual (2005) Budget Variance
Cost $325,000 $313,000 +$12,000
Revenue $5,050,000 $5,220,000 - $170,000
Profit $1,419,300 $1,544,500 - $115,200
Investment $1,673,000 $1,671,000 + $ 2,000