Leisure Time Owns Six Hotels in Hawaii, Collectively Known as the Hawaiian

Multiple Choice

Leisure Time 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 Leisure Time uses a performance-reporting system that is based on responsibility accounting, which of the following disclosures is likely to occur?

A) The detailed operating costs of the Surf & Sun's Kitchen Department will appear on the Hawaiian Division's performance report.
B) The Food and Beverage Department's profit will appear on Kitchen's performance report.
C) The profit of the Surf & Sun hotel will appear on the Hawaiian Division's performance report.
D) The Food and Beverage profit at the Surf & Sun will appear on Leisure Time's performance report.
E) The profit of the Surf & Sun hotel will appear on Food and Beverage's performance report.