Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 10, Problem 1CMA
To determine
Identify the responsibility center of the manager of the telecommunications sales team.
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a) A company prepares the following main budgets:
Sales budget.
Manufacturing budget.
Purchasing budget.
Selling and administration overheads budget.
Budgeted balance sheet.
Required:
Discuss the relationship between these budgets and the content of each.
b) Discuss the role of cost accounting in relation to various department in your organisation.
Which of the following is true in a bottom-up budgeting approach?
a.Supervisors tell departments their budget amount and the departments are free to work within those amounts.
b.Departments determine their needs and relate them to the overall goals.
c.Every expense needs to be justified.
d.Departments budget their needs however they see fit.
While preparing the production budget, the Production Manager checks on and co-ordinates with :
a.
All the options listed
b.
The finance manager
c.
The purchase manager
d.
The Sales manager
Chapter 10 Solutions
Managerial Accounting
Ch. 10 - Differentiate between centralized and...Ch. 10 - Differentiate between a profit center and an...Ch. 10 - Prob. 3DQCh. 10 - What is the major shortcoming of using operating...Ch. 10 - In a decentralized company in which the divisions...Ch. 10 - How does using the return on investment facilitate...Ch. 10 - (a) Explain how return on investment might lead a...Ch. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - When using the negotiated price approach to...
Ch. 10 - Budgetary performance for cost center Vinton...Ch. 10 - Support department allocations The centralized...Ch. 10 - Prob. 3BECh. 10 - Profit margin, investment turnover, and ROI Briggs...Ch. 10 - Residual income The Commercial Division of Galena...Ch. 10 - Prob. 6BECh. 10 - Budget performance reports for cost centers...Ch. 10 - The following data were summarized from the...Ch. 10 - For each of the following support departments,...Ch. 10 - Prob. 4ECh. 10 - Service department charges In divisional income...Ch. 10 - Varney Corporation, a manufacturer of electronics...Ch. 10 - Horton Technology has two divisions, Consumer and...Ch. 10 - Rocky Mountain Airlines Inc. has two divisions...Ch. 10 - Championship Sports Inc. operates two divisionsthe...Ch. 10 - Prob. 10ECh. 10 - The operating income and the amount of invested...Ch. 10 - Prob. 12ECh. 10 - The condensed income statement for the Consumer...Ch. 10 - The Walt Disney Company (DIS) has four business...Ch. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Materials used by the Instrument Division of...Ch. 10 - Prob. 18ECh. 10 - GHT Tech Inc. sells electronics over the Internet....Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Prob. 3PACh. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Prob. 2PBCh. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PBCh. 10 - Prob. 1MADCh. 10 - Prob. 2MADCh. 10 - Papa Johns International, Inc. (PZZA), operates...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Prob. 3TIFCh. 10 - The three divisions of Yummy Foods are Snack...Ch. 10 - Prob. 5TIFCh. 10 - Prob. 1CMACh. 10 - Prob. 2CMACh. 10 - Prob. 3CMACh. 10 - Morrisons Plastics Division, a profit center,...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.arrow_forwardThe Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate’s department. The name of this system of reporting is a. contribution accounting. b. responsibility accounting. c. flexible budgeting. d. program budgeting. e. cost-benefit accounting.arrow_forwardActivity-based budgeting is a system that recorded and analyses activities that lead to costs of the company. State FIVE (5) examples of suitable business using the activity-based budgetingarrow_forward
- The actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.arrow_forwardStatic budget for a service company A hank manager of City Savings Rank Inc, uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trusts. Commercial Loans Mortgage Loans. Operations, Credit Card, and Branch Services. The static budget and actual results for the Operations Department are as follows: a. What information is provided by the budget? Specifically, what questions can thebank manager ask of the Operations Department manager? b. What information does the static budget fail to provide? Specifically, could the budgetinformation be presented differently to provide even more insight for the bank manager?arrow_forwardGiven the following information from Rowdy Enterprises direct materials budget, how much direct materials needs to be purchased?arrow_forward
- Which of the following is true in a bottom-up budgeting approach? Group of answer choices departments determine their needs and relate them to the overall goals supervisors tell departments their budget amount and the departments are free to work within those amounts departments budget their needs however they see it every expense needs to be justifiedarrow_forwardWhen an organization involves its many employees in the budgeting process in a meaningful way, the organization is said to be using an approach most commonly known as: O imposed budgeting. O participative budgeting. e employee-based budgeting. O budget padding. O budgetary slack.arrow_forward1. If a company uses participative budgeting, which group should prepare the initial set of budget dollar amounts? a. Budget committee b. Operating department managers c. Top management d. Accounting departmentarrow_forward
- Amounts from all of the following budgets feed into the pro-forma income statement except the: a. Cash Budget b. Factory Overhead budget c. Direct Materials budget d. Sales Budget and explain the reason behind it.arrow_forwardThe master budget will be different from business to business.This is due to all of the following,except: A.varying sizes and complexities of business B.retail versus service versus manufacturing businesses C.profitability of the business D.number of different products soldarrow_forwardA budget: A.is used to determine if a product should be continued or discontinued B.complies actual costs for a given period C.quantifies management's plans D.determines and evaluates the cost of specific products or activities in a businessarrow_forward
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