1. Explain the responsibility of the accounting department. 2. What is one advantage of having 2...
1. Explain the responsibility of the accounting department.
2. What is one advantage of having 2 costs pools (one for fixed costs and one for variable costs) for each service department?
Homework Answers
Answer 1:
The accounting department is responsible for recording and reporting all the accounting transactions in an organization. The department is basically entrusted to record all the cash flows in the organizations and other non-cash flow transactions that have accounting impact. These activities generally include accounts receivables, accounts payable, sales, purchase, debt, expenses etc. They are responsible for disbursing the various payments to be made including the salary. The accounting department does the verification of the cash flows that are made in the company. They are entrusted to keep the operations running in the business as far as financial aspects are considered. They are responsible for managing and maintaining various bank accounts of the organization. They are the ones responsible for billing of the invoices, for making payments against the purchases and collecting the debt against the sales made.
They are also responsible for reporting the transactions in the financial statements of the organization. They have to ensure that all the finances are secured and there is no cash embezzlement or any fraud in the organization.
Answer 2:
The one advantage of having two cost pools for each service department is that it allows the costs to be allocated more directly on the basis of the cost drivers. By segregating the costs into fixed and variable, the organization can determine the accurate cost incurred for each level of output. It is easily identifiable that the costs are fixed or variable. This will help in doing cost analysis and to take decisions on the basis of the cost effectiveness and cost efficiency.
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1. Explain the responsibility of the accounting department.
2. What is one advantage of having 2...
1. Explain the responsibility of the accounting department. 2. What is one advantage of having 2...
1. Explain the responsibility of the accounting department. 2. What is one advantage of having 2 costs pools (one for fixed costs and one for variable costs) for each service department?
Explain what responsibility accounting is and how budgets are used in responsibility accounting. How should the...
Explain what responsibility accounting is and how budgets are used in responsibility accounting. How should the traditional budget system be evolved to promote innovation within the corporation?
Problem 22.1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant...
Problem 22.1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiane plant is responsible for all of that plant's costs other than her own salary The plant has two operating departments and one service department. The comper and trailer Operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages provides services equally to the two operating departments. A budget is prepared for each...
Discussion Questions 1. What are the major differences between managerial accounting and financial accounting? 2. a....
Discussion Questions 1. What are the major differences between managerial accounting and financial accounting? 2. a. Differentiate between a department with line responsibility and a department with staff re- sponsibility. b. In an organization that has a Sales Department and a Personnel Department, among others, which of the two departments has (1) line re- sponsibility and (2) staff responsibility? 3. What manufacturing cost term is used to describe the cost of materials that are an integral part of the manufactured...
Saved Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie...
Saved Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for...
Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whiteh...
Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for each...
Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant...
Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free’s Indiana plant, is responsible for all of that plant’s costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for each...
Responsibility accounting revolves around the concept that Multiple Choice A. someone has to be made responsible...
Responsibility accounting revolves around the concept that Multiple Choice A. someone has to be made responsible for all costs. B. responsibility for accounting numbers belongs to the accounting department C. each manager’s performance should be judged by how well the manager manages those items directly under his or her control. D. the manager in charge of a particular department should be responsible for all the costs within his or her department.
Check my work 1 Exercise 22-2 Responsibility accounting report-cost center LO P1 Arctica manufactures snowmobiles and...
Check my work 1 Exercise 22-2 Responsibility accounting report-cost center LO P1 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. 5 points Budget еBook Actual Snowmobile Combined Snowmobile Combined ATV ATV $ 47,610 31,500 10,100 4,560 19,100 $19,810 10,700 4,600 3,630 6,300 $19,720 10,990 4,700 3,470...
Janice Black, manager of the Produce Department at Spanky's Grocery, has a monthly responsibility margin of...
Janice Black, manager of the Produce Department at Spanky's Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department. After the allocation, Ms. Black's responsibility margin is -$1,200 per month. Identify the disadvantages of allocating common costs to responsibility centers. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box...
Explain what responsibility accounting is and how budgets are used in responsibility accounting. How should the traditional budget system be evolved to promote innovation within the corporation?
Problem 22.1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiane plant is responsible for all of that plant's costs other than her own salary The plant has two operating departments and one service department. The comper and trailer Operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages provides services equally to the two operating departments. A budget is prepared for each...
Discussion Questions 1. What are the major differences between managerial accounting and financial accounting? 2. a. Differentiate between a department with line responsibility and a department with staff re- sponsibility. b. In an organization that has a Sales Department and a Personnel Department, among others, which of the two departments has (1) line re- sponsibility and (2) staff responsibility? 3. What manufacturing cost term is used to describe the cost of materials that are an integral part of the manufactured...
Saved Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for...
Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for each...
Check my work 1 Exercise 22-2 Responsibility accounting report-cost center LO P1 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. 5 points Budget еBook Actual Snowmobile Combined Snowmobile Combined ATV ATV $ 47,610 31,500 10,100 4,560 19,100 $19,810 10,700 4,600 3,630 6,300 $19,720 10,990 4,700 3,470...
Janice Black, manager of the Produce Department at Spanky's Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department. After the allocation, Ms. Black's responsibility margin is -$1,200 per month. Identify the disadvantages of allocating common costs to responsibility centers. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box...
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