A profit center manager often also supervises revenue and cost center managers. True or False True False
Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…
A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…
Q: Which of the following is not a qualitative decision that should be considered in an outsourcing…
A: Outsourcing refers to receiving of services from another company in order to fulfill out company…
Q: A very key concept in managerial accounting is how costs "behave", either fixed or variable. Once we…
A: Fixed Cost: These are costs that will remain the same irrespective of production or number of units…
Q: managers duty to take appropriate action when accounting reports indicate
A: Managers are involved in planning and implementing appropriate actions to lead the organization…
Q: The systematic examination of the relationships among selling prices, volume of sales and…
A: It is significant for every busines to analyse the quantity to be sold for achieving break even and…
Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…
A: b. is called the hold-up problem
Q: A profit center responsibility report ________. A. is the same as a performance report B.…
A: Profit center responsibility report is prepared using cost volume profit income statement format and…
Q: What is the essence of sound financial management to the procurement manager.
A: Financial management Financial management includes using the planning function, organizing…
Q: True or False Cost and managerial accounting are not the same things
A: Cost accounting is the process of accounting and controlling the cost of a product,operation or…
Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…
A: Answer c. The authority to make decisions over the most significant costs of operations, including…
Q: When it comes to cost behavior,
A: Cost Behavior is that the amendment within the behavior of a price (or costs) thanks to a amendment…
Q: Why can full cost accounting lead to wrong management decisions?
A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…
Q: What of the following is NOT a Benefit of Activity Based Management? a.It assists in the budgeting…
A: Introduction:- Activity Based Management analyzing a company's business activities through…
Q: Accounting systems that use standards for product costs are called budgeted cost systems.
A: Accounting systems that use standards for product costs are called standard cost systems.
Q: “A financial productivity measure contains more information than an operational productivity measure…
A: Introduction: Operational productivity is the ratio of output units to input units, and physical…
Q: 1- When is a revenue or cost item relevant for a particular decision?
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: responsibility centers have accountability for revenues
A: First option is wrong because although investment center has accountability for revenues, cost…
Q: Management accounting is a subset of cost accounting. Cost accounting is a subset of both management…
A: Accounting is the process in which transactions are recorded, summarised, posted and then the result…
Q: indirect material, mixed cost , budgeting, margin of safet
A: The below mentioned are the definitions of indirect material Mixed cost Budgeting Margin of safety
Q: Identify and discuss arguments that individual product managers may put forward to support their…
A: Preferred Revenue Allocation method is a revenue allocation method in which managers in charge of…
Q: A cost center is a responsibility center of a company which incurs losses. incurs costs and…
A: A cost center definitely incurs some cost to the business.
Q: Which one of the following is NOT a budgetary benefit? It establishes the organization's goal. It…
A: Budgeting is a written plan covering projected activities of a firm for a defined period of time…
Q: Discuss how an emphasis on financial performance of cost centers, as measured by traditional cost…
A: Cost Accounting System: Cost accounting system can be defined as a framework designed by the…
Q: The use of market price in internal transfers, generally, provides managerial incentive and leads to…
A: Market price refers to the price that is prevailing in the market in normal conditions considering…
Q: A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b)…
A: The cost center represents the unit of the business that does not generate revenue but incurs cost…
Q: Financial accounting reports are general- purpose, whereas managerial accounting reports are usually…
A: 1. Statement is False As financial accounting reports and managerial accounting reports both are…
Q: What is meant by customer-profitability analysis? Give an example of an activity that might be…
A: Customer Profitability Analysis: It is the process of ascertaining the amount of revenue earned…
Q: A profit center manager has the responsibility and authority for making decisions that affect…
A: DuPont examination helps in perceiving that the ROI (return on investment) of an organization can be…
Q: Generally speaking, budgets are not used to: assist in the control of profit and operations.…
A: Explanation: Budgets are prepared by the company to 1. Evaluate the performance of particular…
Q: Responsibility centers. Elmhurst Corporation is considering changes to its responsibility accounting…
A: Responsibility Center: The responsibility center is the specific centre in which each work is…
Q: how important does the owner /manager believe cost information is the success of the business?
A: Cost accounting is an accounting system which provides information about all the costs incurred in…
Q: Differentiate between a cost center and a profit center.
A: An activity center, also known as a responsibility center, is a business organization unit that is…
Q: Using performance reports to evaluate cost, revenue, and profit centers Management by exception is a…
A:
Q: evaluated only on ROI.
A: ROI is the return on investment made by entity.
Q: Differentiate between centralized and decentralized operations. Also, differentiate between a…
A: Departmentalization: Departmentalization is a cycle wherein occupations or groups are joined…
Q: Explain why some management accountants believe that absorption costing may provide an incentive for…
A: Absorption costing Absorption costing is an accounting method which helps in computing the total…
Q: What is the aim of dividing businesses into departments for the purpose of controlling management?…
A: The Answer:
Q: What are relevant revenues and cost delays? 2- How do managers use financial and nonfinancial…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Activity center is a unit in an organization for which management wants the costs of a set of…
A: Meaning of Activity Center: A segment of the production or service process for which management…
Q: Explain why rewarding sales personnel on the basisof total sales might not be in the best interests…
A: The main goal of the business is to earn huge profits and maximize their returns in the long run.…
Q: Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the…
A: Responsibility Center: The responsibility center is the specific centre in which each work is…
Q: Management accounting focus on the benefits of users. Select one: O True O False
A: Managerial accounting seems to be the act of “identifying, assessment, research, and presentation of…
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- Components of the organization that are demotivating for purposes of performance management are known as ______. A. business goals B. strategic plans C. uncontrollable factors D. incentivesDifferentiate between a profit center and an investment center.____ 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center ____ 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin ____ 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 ____ 4.Remark…
- Managers in which of the following responsibility centers are held responsible forprofits? (You may select more than one answer.)a. Revenue centersb. Cost centersc. Profit centersd. Investment centersInstructions: Designate the best answer for each of the following questions. 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 4.Remark…Using performance reports to evaluate cost, revenue, and profit centers Management by exception is a term often used in performance evaluation. Describe management by exception and how it is used in the evaluation of cost, revenue, and profit centers.
- Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers. a. true b. falseIn a profit center, the manager has responsibility and authority for making decisions that affect a.assets b.investments c.long-term liabilities d.revenuesThe tendency for managers to behave like the performance metrics are the strategic objectives is known as a. motivated reasoning b. common measures bias c. surrogation d. metrics errors
- Which responsibility center's manager would be most concerned about the segment's return on investment? a. Revenue center b. Profit center c. Investment center d. Cost centerROI and residual income are tools used to evaluate managerial performance in profit centers. True ORFalseWhat is the relationship between the value chain and management accounting? With the use of suitable examples, distinguish among a cost centre, profit centre and an investment centre.