Concept introduction:
Cost center:
Cost center incurs costs and does not generate the revenue directly.
Investment Center:
Investment center takes care of revenue, cost and investment.
Departmental Accounting System:
This is an accounting system which records the transactions of a particular department and shows its performance.
Operating Department:
Operating departments conducts the operations of business like manufacturing, sales, etc.
Profit Center:
Profit center generate revenue and incur expenses.
Responsibility Accounting System:
This is an accounting system which shows responsibility for managers.
Service Department:
Service departments are assisting departments for operating department. Service departments are not directly engaged in main operations but they perform assisting works.
To choose:
The option that states the cost center manager.
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Chapter 10 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
- An effective managerial accounting system should track information about an organizations activities in which of the following areas? a. Development b. Marketing c. Production d. Design e. All of these.arrow_forwardA responsibility center in which a manager is responsible only for costs is a(n) a. investment center. b. revenue center. c. profit center. d. cost center.arrow_forwardWhat are the objectives of a cost management information system?arrow_forward
- Describe the concept of a cost center and, using a specific organization, give an example of how this might be used to achieve the strategic goals of the organization.arrow_forwardThe managers of an organization are responsible for performing several broad functions. They are ____________________________. planning, controlling, and selling directing, controlling, and evaluating planning, evaluating, and manufacturing planning, controlling, and evaluatingarrow_forwardA responsibility center in which managers are held accountable for both revenues and expenses is called a ______. A. discretionary cost center B. revenue center C. cost center D. profit centerarrow_forward
- Define and explain the two major subsystems of the cost management information system.arrow_forwardWhich of the following is not a type of responsibility center? A. concentrated cost center B. investment center C. profit center D. cost centerarrow_forwardMarketing costs and Maintenance costs are the examples of Select one: a. Revenue center O b. Cost center c. Investment center O d. Discretionary cost centerarrow_forward
- Explain the following concepts: indirect material, mixed cost , budgeting, margin of safety .provide examples for each of them. The subject is Managerial Accounting.arrow_forwardIt is commonly suggested that a management accounting system should be capable of supplying different measures of cost for different purposes. You are required to set out the main types of purpose for which cost information may be required in a business, and to discuss the alternative measures of cost which might be appropriate for each purpose.arrow_forwardi. What are the costs and benefits to be taken into consideration when managers choose between applying predetermined overhead rates or actual overhead rates.ii. Explain why management accountants allocate indirect cost to responsibility centres.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
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