FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
A department that incurs costs but does not generate revenue is called
a(n)
(a) profit center.
(b) cost center.
(c) investment center.
(d) limited center.
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- Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments based on the relative benefit each department receives. c. Are the same as uncontrollable expenses. d. a, b, and c above are all true. e. a and b above are true.arrow_forwardA controllable cost is any cost that can be A. segregated B. influenced C. controlled D. excluded by a responsibility center manager for a period of time.arrow_forwardClassify the following fixed costs as normally being either committed or discretionary:f. Management development and training.arrow_forward
- . Differentiate between a cost center and a profit center. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________arrow_forwardA department’s profit is equal to a. the department's revenue less divisional variable costs. b. the department’s revenue less their share of corporate costs only. c. the department’s revenue less divisional variable costs and less investment costs. d. the department’s revenue less divisional variable and less their share of corporate costs.arrow_forwardA cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.arrow_forward
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