The following are nine technical accounting terms introduced or emphasized in this chapter. Transfer price Common fixed costs Responsibility margin Contribution margin Performance margin Traceable fixed costs Cost-plus transfer price Product costs Committed fixed costs Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not cor- rectly describe any of the terms. The costs deducted from contribution margin to determine responsibility margin. a. b. Cost to produce plus a predetermined markup. c. Fixed costs that are readily controllable by the manager. d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs.

The following are nine technical accounting terms introduced or emphasized in this chapter. Transfer price Common fixed costs Responsibility margin Contribution margin Performance margin Traceable fixed costs Cost-plus transfer price Product costs Committed fixed costs Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not cor- rectly describe any of the terms. The costs deducted from contribution margin to determine responsibility margin. a. b. Cost to produce plus a predetermined markup. c. Fixed costs that are readily controllable by the manager. d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 6PA: Using the information from BDS Enterprises, prepare the income statement to include all costs, but...

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