Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior.

Q: Identify and explain the components of management compensation and the trade-offsthat compensation…

A: Employment:   Under the contract of an employment, one party works for another party in exchange for…

Q: he management wants to know about the cost behaviour and how to classify the cost according to its…

A: Cost behaviour refers to an aspect which helps in indicating the change incurred in costs when there…

Q: Managers in which of the following responsibility centers are held responsible forprofits? (You may…

A: C. Profit centers is the answer

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

A:

Q: Some of the things that are the responsibility of the operational sector are capacity planning.…

A: Capacity planning refers to a process for determining whether the production resources like…

Q: Explain why knowledge of cost behavior is useful in product performance evaluation.

A: Definition: Product performance: Product performance indicates how well the product is flourishing…

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: When evaluating the performance of a manager, why shouldfixed costs be divided into the categories…

A: Controllable expenditure: Controllable expenditure is an expenditure that is directly controllable…

Q: What is a responsibility center?

A: Responsibility center: Responsibility centers are the segment of an organization which is authorized…

Q: How cost accounting is useful for external user as Government ,and customer etc.support your answer…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: What is the typical focus of responsibility reports for cost centers, revenue centers, and profit…

A: Responsibility Centre:   A responsibility centre is used to show the financial performance of all…

Q: Define recruiting and what are its representative cost driver?

A: Recruiting:Recruiting is the process of hiring qualified employees to make them work for the…

Q: Describe the critical factor in evaluating whether a performanceobligation is satisfied.

A: Performance Obligation: Performance obligation means a promise to transfer goods or services.

Q: Explain how to get positive behavioral effects from a responsibility-accounting system.

A:

Q: What is the key feature of activity-based responsibility accounting? Briefly explain.

A:

Q: responsibility centers have accountability for revenues

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

Q: Define and give examples of the following terms: cost center, revenue center, profit center, and…

A: Responsibility center: It refers to that unit of the organization for which a separate executive is…

Q: What is the relationship between contribution margin and responsibility margin? Explain how each of…

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: In a management setting, does Transfer Pricing affects Absorption & Variable, Budgeting, and…

A: Transfer Pricing Transfer prices are required when profit centres are utilised to determine the…

Q: What is the importance of Responsibility Accounting?

A: Responsibility accounting is an essential thought of accounting execution assessment structures. The…

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: Name a firm or organization you know of that you are reasonably sure uses cost management andexplain…

A: Cost Management: Cost management involves the development and use of cost management information…

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: Define the term Sponsor's Costs?

A: Sponsorship cost refers to the cost of supporting an event or economic activity for an agent in…

Q: How cost accounting is useful for external user as Government ,and customer etc,support your answer…

A: Cost accounting gives complete details of the cost incurred in the manufacturing of the product and…

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: Describe the earned value management terms.

A: Introduction: The concept of earned value management  is an important tool both for the manager…

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 is the purpose of a responsibility accounting system?

A: Responsibility accounting system: the responsibility accounting system is an internal system that…

Q: What criteria might managers use to guide cost-allocation decisions? Which are the dominant…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Give examples of external forces that may affect human resources. Explain them briefly.

A: External forces that affect company human resources are the factors environment which are outside…

Q: components of the Contribution Margin Income Statement, how does management use this in the decision…

A:

Q: Which responsibility center's manager would be most concerned about the segment's return on…

A: the responsible center is the organizational unit that is being headed by the manager. generally, a…

Q: Define research and development and what are its representative cost driver?

A: Cost drivers: It refers to the object or things which affect the costs of a business. For example,…

Q: How Absorption and Variable Costing, Budgeting and Responsibility Accounting are connected?

A: Answer: Absorption and Variable Costing, Budgeting and Responsibility Accounting  There is…

Q: Define agency problems, and describe how they give rise to agency costs.

A: Agency problems occur when the managers use the firm's resources to invest in projects that may not…

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…