When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: A. A cost center B. A profit center C. An investment center D. A service department

Question

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Answer 1

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

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Students have asked these similar questions

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n) _____ center. a.investment b.cost c.profit d.volume

In which of the following responsibility centers does the manager have responsibility for and authority over the unit's costs, but not its revenues or investment decisions? Group of answer choices a- Cost Center b- Profit Center c- Investment Center d- Liability Center

In a decentralized accounting system, a company that gives a manager responsibility over revenues, costs, and investment in assets is organized as what type of responsibility center? Group of answer choices cost center profit center investment center none of these

Answer 2

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

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Answer 3

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

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Answer 4

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer 12

Answer to Problem 1SEQ

B. A Profit Center

Answer 13

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 14

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When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: A. A cost center B. A profit center C. An investment center D. A service department

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Answer to Problem 1SEQ

Explanation of Solution

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Chapter 14 Solutions