C is corrent. Under responsibility accounting, costs, revenues, and investments are only allocated to those responsibility centers which have control over them. The manager of a profit center would have control over both costs and revenues, while the manager of an investment center would have control over costs, revenues, and investments.
A is incorrect. Under responsibility accounting, controllable costs would be included in the performance reports of both.
B is incorrect. Under responsibility accounting, controllable costs would be included in the performance reports of both.
D is incorrect. Under responsibility accounting, controllable costs would be included in the performance reports of both.
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