College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 25, Problem 1MC
To determine
Find the correct option, the option that indicates the department that incurs costs but does not produce income.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A department that incurs costs but does not generate revenue is calleda(n)
(a) profit center.(b) cost center.(c) investment center.(d) limited center.
True or false
A cost center manager does not have the ability to produce revenue.
A
is not an example of a cost objective.
a.
department
b. product
c. territory
d. All of these answers are correct
Chapter 25 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 25 - A department that incurs costs and generates...Ch. 25 - Departmental gross profit is the difference...Ch. 25 - Prob. 3TFCh. 25 - Direct expenses are operating expenses incurred...Ch. 25 - Departmental direct operating margin is the...Ch. 25 - Prob. 1MCCh. 25 - The difference between a departments net sales and...Ch. 25 - Prob. 3MCCh. 25 - The difference between a departments gross profit...Ch. 25 - The difference between a departments gross profit...
Ch. 25 - Prob. 1CECh. 25 - Prob. 2CECh. 25 - Prob. 3CECh. 25 - Prob. 1RQCh. 25 - Prob. 2RQCh. 25 - Prob. 3RQCh. 25 - Prob. 4RQCh. 25 - Prob. 5RQCh. 25 - Prob. 6RQCh. 25 - Prob. 7RQCh. 25 - Prob. 8RQCh. 25 - Distinguish between departmental gross profit,...Ch. 25 - Prob. 10RQCh. 25 - GROSS PROFIT SECTION OF DE PART MENT AL INCO ME ST...Ch. 25 - ALLOCATING OPERATING EXPENSESQUARE FEET Weaverling...Ch. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Mercado...Ch. 25 - COMPUTING OPERATING INCOME The sales, cost of...Ch. 25 - Prob. 6SEACh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - INCOME STATE MENT WITH DEPARTMENTAL OPERATING...Ch. 25 - INCOME STATEMENT WITH DEPART MENTAL DIRECT...Ch. 25 - Prob. 10SPACh. 25 - GROSS PROFIT SECTION OF DEPART MENTAL INCOME...Ch. 25 - Prob. 2SEBCh. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Herbert...Ch. 25 - Prob. 5SEBCh. 25 - Prob. 6SEBCh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - Prob. 8SPBCh. 25 - Prob. 9SPBCh. 25 - Prob. 10SPBCh. 25 - Prob. 1MYWCh. 25 - Prob. 1ECCh. 25 - MASTERY PROBLEM Bobs Acme Supermarket has been in...Ch. 25 - CHALLENGE PROBLEM This problem challenges you to...
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
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
arrow_forward
What of the following is NOT a Benefit of Activity Based Management?
a.It assists in the budgeting process.Â
b.It aids management in cost cutting and/or cost control and inferentially in product profitability.
c.It causes managers to identify non-value added activities and therefore encourages thinking of means of reducing such activities.
d.Is more complex than traditional accounting system because it uses multiple cost application rates, one for each activity or cost pool.
arrow_forward
Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments based on the relative benefit each department receives. c. Are the same as uncontrollable expenses. d. a, b, and c above are all true. e. a and b above are true.
arrow_forward
Which of the following is not a type of responsibility center? A. concentrated cost center B. investment center C. profit center D. cost center
arrow_forward
1. Discuss whether the manager of Bell Division should be evaluated only on ROI?Â
2. Provide two (2) reasons why ROI, RI, and EVA may be inappropriate measures of performance.
arrow_forward
Q2. For what decisions is the manager of a cost center not responsible?
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
arrow_forward
A department’s profit is equal to
a. the department's revenue less divisional variable costs. b. the department’s revenue less their share of corporate costs only. c. the department’s revenue less divisional variable costs and less investment costs. d. the department’s revenue less divisional variable and less their share of corporate costs.
arrow_forward
3.
Which of the following statements is most correct about step costs?Â
they have the same behaviour as fixed costs between certain levels of activity
Â
they vary in direct proportion to changes in the level of activity
Â
they are sunk costs
Â
they are used in financial reporting and tax accounting purposes
Â
they are excluded from consideration in budgeting
arrow_forward
QUESTION 28
Which of the following is not a reason for cost allocation?
Â
A.
Maximization of direct cost efficiency
Â
B.
Cost-based reimbursement
Â
C.
Cost determination of product or service
Â
D.
Cross-department monitoring
arrow_forward
A cost center
is a responsibility center of a company which incurs losses.
incurs costs and generates revenues.
only incurs costs and does not directly generate revenues.
is a responsibility center which generates profits and evaluates the investment cost of earning the profit.
arrow_forward
QUESTION 15
Which of the following is not a type of responsibility centers?
Â
A.
cost center
Â
B.
revenue center
Â
C.
profit center
Â
D.
operations center
Â
E.
investment center
arrow_forward
Wrong allocation of common costs lead to
Â
A. Inaccurate estimation of cost of products or services
B. Under utilization of capacity
C. Lower profit margin
D. All of the above are correct
arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
GE McKinsey Matrix for SBU Strategies; Author: Wolters World;https://www.youtube.com/watch?v=FffD1Ze76JQ;License: Standard Youtube License