Define and give examples of the following terms: cost center, revenue center, profit center, and investment center.

Q: Explain what is Flow Cost Accounting, its nature.

A: Material flow cost accounting or flow cost accounting can be defined as a method used by firms and…

Q: Explain the following basic principles in cost management: a. profits b. life cycle costs c.…

A: basic principles in cost management explained Indirect costs Expenses which are  not readily…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Define data processing and what are its representative cost driver?

A: Data processing:Data processing generally converts raw data into a desired and used format that can…

Q: Explain whether the organization would produce the information when the expected costs is higher…

A:

Q: Describe analyzing of profit using contribution margin.

A: The contribution margin ratio is the percentage of difference in a company's sales and variable…

Q: Define the term profit oriented.

A: Profit Oriented Company: Profit oriented company are refer as the company which main aim is to earn…

Q: Explain the concepts of revenue, costs, break-even and profit with examples?

A: These concepts are related to variable costing in which we use variable cost to compute our…

Q: Identify the purpose and process for each component (Front-End, Middle, Back-End) of revenue cycle…

A: What is RCM? Revenue Cycle Management (RCM) alludes to the way toward recognizing, gathering and…

Q: Discuss the role of profit plan in implementing strategy.

A: Strategy: It is a plan of action that is framed to achieve the organizational overall goals.

Q: describe the factors that drive sales and revenue: Income Advertising Preferences Pricing

A: Income : Income is the money received by a person or a company in exchange for labour, the…

Q: Distinguish between a cost center, a profit center, and an investment center

A: Definition: Responsibility center: A department or unit of a corporation where the management…

Q: What is the meaning of contribution margin ratio? How is this ratio useful in planning…

A:

Q: Responsibility centers typically involve cost, profit, and investment centers. What is the basic…

A: A responsibility center is a functional entity within a company with its own aims and objectives,…

Q: Describe the account analysis method for estimating a cost function.

A: Definition:   Account Analysis Method: The account analysis method of estimating a cost function…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Define the following terms, and explain the relationship between them: (a) cost estimation, (b) cost…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: responsibility centers have accountability for revenues

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

Q: Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment)…

A:

Q: Differentiate between a profit center and an investment center.

A: Responsibility center: A responsibility center is a department or unit of a corporation in which…

Q: Identify and discuss arguments that individual product managers may put forward to support their…

A: Preferred Revenue Allocation method is a revenue allocation method in which managers in charge of…

Q: Value chain classifications Match each of the following cost items with the value chain business…

A: Value Chain Analysis is an inbound logistics that includes a range of activities like receiving,…

Q: What is an operational productivity measure and a financial measure?

A:

Q: Describe the impact that the cost constraint has on reporting accounting information.

A: Accounting information not only must be relevant and faithful, they must also pass the economic test…

Q: Match each of the following type of responsibility centers with what all they are accountable for.…

A: Responsibility Center: A business segment whose managers are responsible or accountable for certain…

Q: Define Accounts payable and what are its representative cost driver?

A: Accounts payable: Accounts payable is the obligation of the company to make payment (within period…

Q: Describe accounting and presentation for research and development and similar costs.

A: Definition:   Research and development cost: These are the cost that is incurred on the research…

Q: Define cost tracing?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Responsibility Centers include the following except: A) Profit B) Revenue C) Process D) Cost

A: These are the type of responsibility center i.e. expense center, profit center, investment and…

Q: What are the drivers to the cost of revenue

A: The total cost of producing and delivering a product or service to customers is known as the cost of…

Q: h of the following is the format of the income statement that is MOST useful in decision-making?…

A: Solution: For the purpose of decision making, we need to have comparison of relevant revenues and…

Q: Differentiate between a cost center and a profit center.

A: An activity center, also known as a responsibility center, is a business organization unit that is…

Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…

A:

Q: Explain the concept of a product family and its relationship to value stream accounting.

A: Product family is the grouping of same kind of product and services which go through the same…