 Show
Chapter 9 Multiple Choice: 1.It is a subdivision of managerial accounting which relates reporting or performance directly with the person who has the responsibility for its control. It is useful in assessing the performance of persons responsible for controlling costs, revenues, or invested capital and analyzing deviations from planned and prior performance. a.Accounting systems design and installation b. Cost accounting c.Standard cost accounting d.Responsibility accounting 2.It relates accounting to the budgetary system, thus acting as a control device. Management reports give details of budgeted and actual performances and show responsibilities at all levels of management. a.Programmingc. Responsibility accounting b.Accounting system d. Budgeting 3.Which of the following statements is correct? a.The direct cost of a particular department is always a controllable cost. b.Responsibility accounting identifies cost, revenues and even capital investments with individuals, e.g., managers, and thus provides for more control and evaluation of performance. c.All managers within an organization have equal authority and responsibility d.Internal reports prepared under the responsibility accounting system should be limited to only variable manufacturing costs. 4.B Company uses an accounting system that charges costs to the manager who has been given the authority to make the decisions regarding the incurrence of such costs. For example, if the Production manager was not able to monitor the efficiency of the workers in his department, so that he was forced to ask them to work overtime to finish a specific job on time, the additional cost of working overtime is charged to such Manager or his department. This type of accounting system is known as a.Transfer price accountingc. functional accounting b.Responsibility accountingd. cost accounting 5.In a responsibility accounting system, costs are classified as controllable and non- controllable costs, which imply that some revenues and costs can be changed through effective management. Controllable costs can be described as including a.Discretionary costs only b.Prime costs only c.Only those costs that the manager can influence in the current time period d.All the costs that are directly traceable to the responsibility center 6.The basic purpose of responsibility accounting is a.Motivationc. authority b.Variance analysisd. budgeting MULTIPLE CHOICE QUESTIONS 1.When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is: A.goal congruence. B.planning and control. C.responsibility accounting. D.delegation of decision making. E.strategic control. Answer: A LO: 1 Type: RC 2.Which of the following is not an example of a responsibility center? A.Cost center. B.Revenue center. C.Profit center. D.Investment center. E.Contribution center. Answer: E LO: 2 Type: RC 3. A manufacturer's raw-material purchasing department would likely be classified as a: A.cost center. B.revenue center. C.profit center. D.investment center. E.contribution center. Answer: A LO: 2 Type: N 4.Hitchcock Corporation is in the process of overhauling the performance evaluation system for its Los Angeles manufacturing division, which produces and sells parts that are popular in the aerospace industry. Which of the following is least likely to be chosen to evaluate the overall operations of the Los Angeles division? A.Cost center. B. Responsibility center. C.Profit center. D.Investment center. E.The profit center and investment center are equally unlikely to be chosen. Answer: A LO: 2 Type: N Chapter 12337 Which of the following is the responsibility center where managers have control over costs and revenues but not investment in operating assets?Profit center. The manager is responsible for costs and revenues, but not investments in assets. (A case might be made that if the manager has control over significant purchases of assets for the store, this would be an investment center.)
Which responsibility center is responsible for controlling revenue costs and investing for a company?Investment Centre- This center is responsible for both investments and revenue. The investment manager can control expenses, income, the fund invested in assets, etc.
In which of the following responsibility Centres is a manager responsible for both revenues and costs?Profit Centers. A profit center is an organizational segment in which a manager is responsible for both revenues and costs (such as a Starbucks store location).
In which of the following responsibility centers the manager is accountable for revenues costs and assets?Profit Centre:
A profit centre is a segment of an organisation whose manager is responsible for both revenues and costs. In a profit centre, the manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits) for the department or division.
|
Which of the following is the responsibility center where managers have control over costs and revenues but not the investment in operating assets?
zusammenhängende Posts
Urheberrechte © © 2024 WIKIFI Inc.
