For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. a. property tax of an existing manufacturing facility b. research and development of a product c. advertising of a product d. insurance cost of the existing manufacturing facility e. design of a product

For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. a. property tax of an existing manufacturing facility b. research and development of a product c. advertising of a product d. insurance cost of the existing manufacturing facility e. design of a product

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 2EA: For the following descriptions state whether the cost is controllable or uncontrollable by...

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Which of the following activities should be expensedcurrently as R&D costs?(a) Testing in search for or evaluation of product orprocess alternatives.(b) Engineering follow-through in an early phase ofcommercial production.(c) Legal work in connection with patent applications orlitigation, and the sale or licensing of patents.
Which of the following is NOT correct about cost center and cost unit?Select one:a. A cost center is defined as "a location, person, or item of equipment for which costs may be ascertained and used for the purpose of control.b. a cost center refers to a section of the business to which costs can be charged. It may be a location, an item of equipment, or a person.c. A cost unit is defined as a unit o/product, service or time in relation to which cost may be ascertained or expressed.d. In any organization, there is either cost center or cost unit; they are alternatives for each other.
Practice 2: a: Define standard costs. b: under what conditions should previously established standard costs be revised? c: explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.
Q1. 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 is not an example of a cost objective. a. department b. product c. territory d. All of these answers are correct
Which among the following is not a relevant cost for decision making? a. Cost of producing additional units in case an order is accepted b. Future rent payments c. Depreciation of machinery d. Costs that can be avoided as a result of managerial decisions
2.Costs that are incurred in bringing the inventories to their present location and condition are capitalized as cost of inventories and these include a.costs of designing products for specific customers. b.abnormal amount of wasted materials, labor and production costs. c. storage cost not necessary in the production process before a further production stage. d. selling costs.
Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. a.Cannot b.Can c.May or may not d.Must
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
Which of the following is not a qualitative decision that should be considered in an outsourcing decision? A. employee morale B. product quality C. company reputation D. relevant costs
For the following descriptions, state whether the cost is controllable or uncontrollable by responsibility center managers. A. advertising for a merchandiser B. corporate income taxes C. office supplies for a merchandiser D. donations to the Salvation Army E. insurance for delivery vehicles
Environmental costs are those costs incurred because poor environmental quality exists or may exist. As with quality costs, environmental costs can be placed into one of four categories. One of these categories is external failure costs. Which of the following describes one of the two external failure cost categories? a. Costs incurred to detect pollution caused by the firm b. Costs incurred to prevent pollution from contaminating the environment after pollution has been produced c. Pollution costs caused by the firm but paid for by society d. Costs incurred to prevent the production of pollution