What is the aim of dividing businesses into departments for the purpose of controlling management? How does one go about determining the profitability of a cost center? Explain

Q: Which of the following major activities of a business will result in product costs? Multiple Choice…

A: Manufacturing is a process of production of goods for sale. It involves conversion of raw material…

Q: Explain the following in simple words or explanation: Would scenario planning cause the company to…

A: Scenario analysis or scenario planning is defined as the method that describes the strategic…

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: 1. Differentiate between a profit center and an investment center.

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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: Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?…

A: Under CVP analysis, the effect of variable cost and fixed cost on profitability is to be determined.…

Q: Explain the contemporary business environment and how it has influenced costmanagement.

A: The business environment that is extremely competitive and creates a performance pressure on the…

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: Is it correct that managerial accounting mainly provides services for manufacturing organizations?…

A: The concept of managerial accounting is majorly used to analyzed costs incurred on the products but…

Q: Why do managers use a standard cost system to control business activities? a) Setting standards…

A: Standards represent the budgeted performance that the company expects to achieve in future. The…

Q: activities performed by another firm or individual

A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…

Q: What are the similarities in calculating the cost of materials used in production, the cost of goods…

A: Cost of the materials used in production: This is the additional amount of material put in the…

Q: A profit center manager often also supervises revenue and cost center managers. True or False True…

A: Solution 1: True, A profit center manager often also supervise revenue and cost center manager…

Q: Computer controlled machining system is an example about which of the following primary activities…

A: Value chain analysis has 5 primary activities namely Inbound logistics, Outbound Logistics,…

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: In Management Accounting, what is the transfer price? What three areas does transfer price affect in…

A: SOLUTION- TRANSFER PRICE- IT IS THE PRICE THAT RELATED PARTIES CHARGED TO EACH OTHER. ON THE OTHER…

Q: ow important profit center in managerial accounting

A: Profit Center - Profit Center is the individual unit operating independently from the main branch or…

Q: How can accounting con

A: these three steps can increase the capacity of of an accounting firm. Adopt a cloud-based platform…

Q: What is return on investment, and how is it calculated?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: without and effective system of cost accounts it is doubtful whether can survive in the intensely…

A: Cost accounting is the accounting of cost which collects all data from different sources and after…

Q: Firms often treat investment centers as if they were a... Revenue center Stand-alone business…

A: Decentralization: Decentralization alludes to a particular type of authoritative construction where…

Q: Why division of tasks or units of an organization benefits the company

A: Organisational structure is an outline of a company, which defines the role and responsibility of…

Q: What is the nature of cost management and how beneficial it is for the business?

A: Introduction:   Cost management is the process of planning and controlling a business's running…

Q: Why are companies divided into departments for the purpose of management control?  What are some of…

A: A business is normally organized by its functions, e.g. marketing department, accounts department,…

Q: Differentiate between centralized and decentralized operations. Differentiate between a profit…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A business that is just starting out and is uncertain about what the sales levels will be would…

A: Fixed cost is the cost that does not change with the change in the output. Whereas, variable cost…

Q: he costs referred to as “controllable costs” are       a. Costs which management decides to incur in…

A: Solution: The costs referred to as “controllable costs” are "Costs which are likely to respond to…

Q: Who in the typical firm or organization is responsiblefor cost management?

A: Cost Management:   Cost management involves the development and use of cost management information…

Q: ng does not describe a management control system? OA. A system that only measures profitability…

A: As we know that , a management control system (MCS) is a system which collects and uses information…

Q: Which of the following are characteristics of economic agents?a. They participate in economic…

A: Economic Event:   Economic event means events which include transferring the ownership of resource…

Q: Why would a corporation choose process costing over task order costing? How are the two systems…

A: Here is the Answer

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: Define productivity.

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

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: Why is knowledge of cost behaviour important for managerial decesion making ? Give an example to…

A: The company's motive will be to increase the profitability. The profitability of the company can be…

Q: The purpose of internal control is to have proper control over business. Proper control means, the…

A: The purpose of internal control is to have proper control over business. Proper control means, the…

Q: The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…