Tranquil Beaches owns six hotels in Hawaii, collectively known as the Hawaiian Division. The various hotels, including the Surf & Sun, have operating departments (such as Maintenance, Housekeeping, and Food and Beverage) that are evaluated as either cost centers or profit centers. The Food and Beverage Department, for example, is a profit center, with activities divided into three segments: Banquets and Catering, Restaurants, and Kitchen. If Tranquil Beaches uses a performance-reporting system that is based on responsibility accounting, which of the following disclosures is likely to occur?
A. The Food and Beverage profit at the Surf & Sun will appear on Tranquil Beaches' performance report.
B. The profit of the Surf & Sun hotel will appear on the Hawaiian Division's performance report.
C. The Food and Beverage Department's profit will appear on Kitchen's performance report.
D. The profit of the Surf & Sun hotel will appear on Food and Beverage's performance report.
E. The detailed operating costs of the Surf & Sun's Kitchen Department will appear on the Hawaiian Division's performance report.
Answer: B
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