FUND.ACCT.PRIN.
FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 24, Problem 1QS
To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directly

Investment Center:

Investment center takes care of revenue, cost and investment

Departmental Accounting System:

This is an accounting system which records the transactions of a particular department and shows its performance.

Operating Department:

Operating departments conducts the operations of business like manufacturing, Sales etc.

Profit Center:

Profit center generate revenue and incur expenses

Responsibility Accounting System:

This is an accounting system which shows responsibility for managers.

Service Department:

Service departments are assisting departments for operating department. Service departments are not directly engaged in main operations but they perform assisting works.

To Identify:

The terms for given descriptions

Expert Solution & Answer
Check Mark

Answer to Problem 1QS

The terms for given descriptions are as follows:

    DescriptionTerm
    A
    1. Cost Center
    2. Investment Center
    B
    3. Departmental Accounting System
    4. Operating Department
    F
    5. Profit Center
    C
    6. Responsibility Accounting System
    E
    7. Service Department

Explanation of Solution

    TermExplanationsDescription
    1. Cost Center
    Cost center incurs costs and does not generate the revenue directly
    A
    2. Investment Center
    Investment center takes care of revenue, cost and investment
    C
    3. Departmental Accounting System
    This is an accounting system which records the transactions of a particular department and shows its performance.
    B
    4. Operating Department
    Operating departments conducts the operations of business like manufacturing, Sales etc.
    D
    5. Profit Center
    Profit center generate revenue and incur expenses
    F
    6. Responsibility Accounting System
    This is an accounting system which shows responsibility for managers.
    G
    7. Service Department
    Service departments are assisting departments for operating department. Service departments are not directly engaged in main operations but they perform assisting works.
    E

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Chapter 24 Solutions

FUND.ACCT.PRIN.

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