Question 5 A difference between a Cost Center and a Profit Center is that a: O a) Cost Center is responsible for revenues and expenses. Ob) Cost Center and a Profit Center are both only responsible for the same expenses. Oc) Cost Center is not responsible for expenses. d) Cost Center is not responsible for revenues.

Question 5 A difference between a Cost Center and a Profit Center is that a: O a) Cost Center is responsible for revenues and expenses. Ob) Cost Center and a Profit Center are both only responsible for the same expenses. Oc) Cost Center is not responsible for expenses. d) Cost Center is not responsible for revenues.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1MC

See similar textbooks

Similar questions

True or false A cost center manager does not have the ability to produce revenue.
7- A profit centre is a centre. a. which is concerned with increasing cost b. which manages cost c. which is concerned with earning an adequate return on investment d. where the manger has the responsibility of generating and maximizing profit
Which of the following statement is correct for relevant costs? a.It is avoidable, future and measured by cash b.It is avoidable, future and measured by profit c.It is unavoidable, future and measured by cash d.It is unavoidable, future and measured by profit
A Differential Revenues are the differences in revenues between any competing alternatives to the solution of a problem. 3. What are differential Revenues? k B. They are Costs that increase the revenue a Product Line. СА Any Revenue that increases when costs go down. D. A Revenue the moves in the opposite direction of a Cost.
1. Why are indirect costs not directly traced to cost objects in the same way as direct costs? 2. Define cost tracing, cost allocation, allocation base and cost driver. 3. Distinguish between arbitrary and cause-and-effect allocations. 4. Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements. 5. Explain why cost systems should differ in terms of their level of sophistication.
Which of the following costs are irrelevant to business decisions? a. Avoidable costs b. Costs that differ between alternatives c. Sunk costs d. Variable costs
1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and the income statement. B) Management uses average costs to assign to the balance sheet and the income statement. C) Older costs go to the income statement; newer costs go to the balance sheet. D) Older costs go to the balance sheet; newer costs go to the income statement. Explain for the answer chosen please.
Which of the following types of responsibility centers have accountability for revenues? Cost centers and investment centers. Profit centers and investment centers. Cost centers and profit centers. Expense and investment centers.
Explain the Cost of Revenue vs. COGS.
How you relate the differential cost with management of revenue in management accounting.