center responsibility reports typically focus on the flexible budget variance, which is the difference between actual results and the flexible budget.

Cost center responsibility reports typically focus on the flexible budget variance, which is the difference between actual results and the flexible budget.

Explanation:

The cost center is the responsible center where the manager is only responsible for controlling costs. It is his duty to track the expenses. The performance evaluation of the cost center is based on its flexible budget variance.

The flexible budget variance generally provides the difference between actual results and the flexible budget. The cost center is of two types:

i)Production cost center

ii)Service cost center

The production department, maintenance department, accounting department and human resource department together form the cost center.

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