A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b) cost center.(c) investment center.(d) limited center.

Q: 6. Conventional CVP analysis requires management to classify all costs as either with respect to…

A: Cost volume profit (CVP) analysis is an accounting technique of determining the effect of change in…

Q: What is conceptually the most defensible method for allocating support-department costs? Why?

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Explain Traffic Acquisition Costs (TAC), Other cost of revenues and R&D expenses. Are they fixed or…

A: Cost of revenue refers to the cost which are incurred in generating revenue of a firm. It may…

Q: A responsibility accounting system utilizes and assigns costs on the basis of their a.…

A: With the use of a responsibility accounting system, performance and accountability may be evaluated…

Q: Which is NOT included as concept or aspect of management? a. It is concerned with all kinds of…

A: Correct answer is option (d) It applies only to top level management.

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…

A: b. is called the hold-up problem

Q: true of false: A collection of costs to be assigned is called a cost pool.

A: Activity based Costing system is a method which is used to calculate total amount of Cost by…

Q: he following statements are incorrect, except a. Cost is the same with expense. b. All costs…

A: Cost accounting refer to the outflow of money for the purpose of acquiring assets, producing goods…

Q: 1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and…

A: FIFO is one of the inventory valuation method being used in business. FIFO means first in first out.…

Q: The reason for some costs to be mixed in nature is: 1. presence of sunken cost in the cost…

A: Mixed costs includes the nature of fixed costs as well nature of variable cost. Some part of the…

Q: Indirect material cost is that which cannot be conveniently identified with and allocated to cost…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Which of the following statements is most correct about step costs?  they have the same behaviour…

A: Marginal costing is the one by which the cost of additional unit production is calculated. Under…

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

Q: A cost objective is the: O reason for allocating the cost O product, service, or department that is…

A: Cost object is the allocation related to the product, service. It allocate the cost according to the…

Q: A is not an example of a cost objective. a. department b. product c. territory d. All of these…

A: The question asked to find correct the option from the given options.   Cost object: The cost object…

Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: responsibility centers have accountability for revenues

A: First option is wrong because although investment center has accountability for revenues, cost…

Q: True or false A cost center manager does not have the ability to produce revenue.

A: Cost centre manager involves in the work of cost related to the product he has not an ability to…

Q: 7- A profit centre is a centre. a. which is concerned with increasing cost b. which manages cost c.…

A: The following are the various types of responsibility centres that are used for better management of…

Q: Joint cost CO

A: Joint cost is the cost of producing two or more products at same time.

Q: Those costs which cannot be influenced by the action of a specified member of an enterprise is…

A: Cost refers to the value and money incurred by producing something or service delivery to generate…

Q: 18. Which of the following cost allocation methods does not take into consideration that service…

A: The direct method is the simplest of the four. The direct method allocates the costs of each of the…

Q: What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues…

A: Relevant / Irrelevant / Differential Costs: Relevant Costs are the cost which are relevant in…

Q: are measures of activities that require the use of resources and thereby cause costs Value Chain…

A: Solution: Cost drivers are measure of activities that requires the use of resources and thereby…

Q: Which of the following statements is false? Multiple Choice O In general, the term expense is used…

A: In accounting we use different terms and words on a regular basis like revenue, costs, expenses,…

Q: Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments…

A:

Q: A controllable cost is any cost that can be A. segregated B. influenced C. controlled D. excluded by…

A: Costs can be classified into various categories based on their nature, behaviours, characteristics,…

Q: The reduction in profit arising from the actions of managers being self-serving or possible conflict…

A: This reduction in profit due to self-serving actions or conflicts of interest often falls under the…

Q: Classify the following fixed costs as normally being either committed or discretionary:f. Management…

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…