In which of the following responsibility centers does the manager have responsibility for and authority over the unit's costs, but not its revenues or investment decisions? Group of answer choices a- Cost Center b- Profit Center c- Investment Center d- Liability Center

In which of the following responsibility centers does the manager have responsibility for and authority over the unit's costs, but not its revenues or investment decisions? Group of answer choices a- Cost Center b- Profit Center c- Investment Center d- Liability Center

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 10MC: Which of the following is not a type of responsibility center? A. concentrated cost center B....

See similar textbooks

Related questions

Q: CC Co. amends its defined pension plan on January 1, 2020, resulting in P520,000 of past service…

A: Past service cost seems to be the adjustment within the current value of the defined benefit…

Q: Date Units Unit Cost Inventory, January 1 950 $10.50 Purchase, January 10 400 12.00 Purchase,…

A: LIFO stands for Last in first out. Using LIFO method, the newer inventory is sold first and older…

Q: Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a…

A: According to IFRS 15, Revenue should be recognized on the basis of Completion Method. In completion…

Q: Honda Motor Company included a separate Corporate Governance Report (CGR) in its 2017 Annual Report.…

A: Corporate governance refers to the set of guidelines, customs, and procedures that regulate and…

Q: The cash register tape for Marin Industries reported sales of $10,307.20. Record the journal entry…

A: A journal entry is an accounting record that is used to document a business transaction. It includes…

Q: Which of the following is included in the numerator of the Acid-Test Ratio calculation (check all…

A: Lets understand the basics. Acid test ratio is a ratio which indicates firm's ability to pay its…

Q: Periodic and Perpetual Systems-Calculating Ending Inventory and Cost of Sales Using FIFO and LIFO…

A: Using LIFO periodic, it is assumed that all the newer inventory is sold out. The oldest inventory is…

Q: Discount allowed in valuing stock because you do own more than 50%.

A: There are discounts which are used by the companies in order to get a deal or crack a deal due to…

Q: Financial Statements of a Manufacturing Firm The following events took place for Technology…

A: Work in progress inventory balance is calculated by deducting the cost transferred to finished goods…

Q: Required information [The following information applies to the questions displayed below] National…

A: Stockholder's Equity - Stockholder's Equity includes Issuance of Common Stock and preferred Stock,…

Q: by Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NC at the…

A: Depreciation per year = (Cost - Salvage value)/ Life Depreciation per year = ($22,000 - $1,000) / 5…

Q: Subject: accounting On September 1, 2020, Sport Company purchased for $4,600,000 snow-making…

A: Depreciation is reduction in value of fixed assets over the period of time. Under straight line…

Q: Describe how the consolidated process tends to disguise information needed to analyze the financial…

A: The act of integrating a parent company's financial statements with those of its subsidiaries to…

Q: On January 1,2019, Agri LTD sold a machine for $10,000, with a 2 year warranty guarantee that the…

A: Revenue is the total income generated by a company or organization from its business activities,…

Q: The Cloth Bonanza sells fabrics to a wide range of industrial and consumer users. One of the…

A: Answer:- Formulas:- 1. EOQ = √(2 x Demand) x ( Order cost) / Carrying cost 2. Annual number of…

Q: For each transaction, determine the impact-increase, decrease, or no effect-on total assets, total…

A: Common shares and preferred shares are the kinds of shares which are issued by the entity in order…

Q: Boise Bookstore is the bookstore on campus for students and faculty. The bookstore shows the…

A: Sales budget records the estimated sales for the required period which helps to keep the required…

Q: What is the effective tax rate that a company will end up paying if their year income is $16.7…

A: The tax has to be paid by companies if they are earning an income more than the exemption limit. In…

Q: eBook Dividends Per Share Oceanic Company has 25,000 shares of cumulative preferred 2% stock, $100…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate…

A: Capital expenditures are expenditures that have enduring benefits and will be capitalized on the…

Q: If restricted stock shares are present in the capital structure, what do you use as the assumed cash…

A: A company's capital structure describes how it finances its operations and expansion by combining…

Q: Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports…

A: The income statement refers to the statement showing the transactions of income and expenses…

Q: JOB ORDER COSTING You are deciding whether to purchase a pizza franchise or open your own restaurant…

A: Answer:- Job order costing system meaning:- For customized projects where the cost is…

Q: stries is considering selling excess machinery with a book value -brokerage commission.…

A: Selling of the machinery is the most appropriate alternative.

Q: At January 1, 2025, Windsor Company's outstanding shares included the following. 272,000 shares of…

A: Earning per share means Net income per share , it can be calculated from Net income available for…

Q: Sport Box sells a wide variety of sporting equipment. The following is information on the purchases…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. FIFO stands for…

Q: Capacity (units) Sales price Variable costs + t Fixed costs * Manufacturing 250,000 $318 $ 150 $…

A: In the above case Computation of Transfer Price : Transfer Price = Variable Costs Then…

Q: Carol Components operates a Production Division and a Packaging Division. Both divisions are…

A: Transfer pricing refers to methods for pricing transactions within and between related enterprises…

Q: Dean Hardware, Inc. is comprised of five operating segments. Information about each of these…

A: An operating segment is considered to be a reportable segment if the reported assets of that…

Q: Fedor paid $13,125.50

A: The Federal income tax is progressive. So as the income increases the tax…

Q: Bluetech Inc. specializes in produc

A: Job order cost system is used when products are made according to customers specifications. Each job…

Q: 250 words - Cost Management II Discuss methods of evaluating and rewarding managerial performance.

A: Managerial performance refers to the effectiveness and efficiency of a manager in achieving the…

Q: Cullumber Enterprises earns 11% on an investment that pays back $92,000 at the end of each of the…

A: To calculate the amount that Cullumber Enterprises invested, we can use the present value formula…

Q: Exercise 13-12A (Algo) Using a T-account to determine cash flow from operating activities LO 13-1…

A: Cash flow statement summarizes a company's inflow and outflow of cash.

Q: During 19X1 and 19X2, Company B used the percentage- of-completion method of accounting for…

A: Switching from the percentage-of-completion method to the completed-contract method of accounting…

Q: izana Computer Company has been purchasing carrying cases for its portable computers at a purchase…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: Jackson Corporation has asked you to analyze their sales and cost data. They have provided you with…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Q: Mercury Corporation issued 6,500 shares of no-par common stock for $25 per share. Mercury also…

A: Journal entries means the primary reporting of the business transactions in the books of accounts.…

Q: Calculate the common-sized percentage 2023. for Gross Margin in

A: GROSS MARGIN Gross Margin is the Ratio between Gross Profit & Net Sales. Gross Margin is one of…

Q: Key takeaways/conclusion regarding the Theranos Silicon Valley Disaster

A: The Theranos Silicon Valley disaster is a case related to a biotech startup called Theranos that…

Q: The old system requires two people to operate it, but the new system would require only a single…

A: The time value of money mentions that the money received in the future has a lower worth than the…

Q: Stock Dividends Penguin Company has the following information regarding its common stock: $24 par,…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Which of the following statements are true regarding corporations? (You may select more than one…

A: Corporation is the type of entity in which owner's are called shareholder's and there are so many…

Q: Mulalo requires R100 000 in finance to start her business. Mr Khumalo, her father, has agreed to…

A: Financial information is used by various stakeholders such as investors, creditors, management,…

Q: On February 12, Addison, Inc., purchased 6,000 shares of Lucas Company at $22 per share plus a $240…

A: The ownership is having less than 20% which is through the purchase of shares and any brokerage paid…

Q: the auditor is planning to use accounts payable confirmations when auditing the client's accounts…

A: Accounts payable confirmations refer to a process used by auditors to verify the accuracy and…

Q: BE16.6- Using Excel to Determine the Markup Percentage Using the Cost-Plus Markup Method PROBLEM In…

A: Markup percentage determines the portion of profit expected to be incurred by the business entity on…

Q: The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory…

A: As per the last in first out (LIFO) method, the goods acquired last are sold first. In other words,…

Q: 8. Under 75% sales assumption, using variable costing, the variable product cost balance can be…

A: The variable costing method computes the product cost or inventoriable cost at the variable…

Q: As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased…

A: Investment in Nursery supplies = $62 millions

Question

In which of the following
responsibility centers does the
manager have responsibility for
and authority over the unit's costs,
but not its revenues or investment
decisions?
Group of answer choices
a- Cost Center
b- Profit Center
c- Investment Center
d- Liability Center

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called_______. A. return on investment B. residual income C. a profit center D. a discretionary cost center
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
Discuss the concept of controllable and uncontrollable costs and how they affect the evaluation of the responsibility centers financial performance.
Differentiate between a profit center and an investment center.
When would management most likely use the net realizable value method of joint cost allocation?
Explain the benefits of a residual income structure within an investment center framework. It may help to think of an example using an existing company.
Managers in which of the following responsibility centers are held responsible forprofits? (You may select more than one answer.)a. Revenue centersb. Cost centersc. Profit centersd. Investment centers
Which of the following types of responsibility centers have accountability for revenues? Cost centers and investment centers. Profit centers and investment centers. Cost centers and profit centers. Expense and investment centers.
Which of the following statements best describes a profit center?a. The responsibility for combining the raw materials, direct labor,and other factors of production into a final productb. The authority to make decisions affecting the majordeterminants of profit, including the power to choose its marketsand sources of supplyc. The authority to make decisions affecting the majordeterminants of profit, including the power to choose its markets,sources of supply, and significant control over the amount ofinvested capitald. The authority to make decisions over the most significant costsof operations, including the power to choose the sources of supplye. The authority to provide specialized support to other unitswithin the organization
A. What is the benefit of cost assignment? How does this aid the organization in financial decisions?
How to define an organizational subunit as a cost center, a profit center, or an investment center?
Which method of allocating support department costs is completed by taking the service flows to production departments only and determining each production department's share of that service? Question options: a) average method. b) step method. c) direct method. d) reciprocal method.