_____________ are responsible only for controlling costs.
A.Convertible centers
B.Revenue center
C.Profit centers
D.Cost centers
Answer:
Correct option is D. Cost centers.
Explanation:
Cost centers are responsible only for controlling cost . Manager of cost centers evaluate each and every stage of manufacturing process and analyse that which stage cost has been extra incurred.
Note:
Convertible center are responsible for converting raw material into finished goods they do not involved in controlling cost or revenue.
Revenue centre are only responsible for generating revenue from sales.
Profit center are responsible for both revenue as well as cost because of maximizing overall profit of the organisation.
_____________ are responsible only for controlling costs. A.Convertible centers B.Revenue center C.Profit centers D.Cost centers
Which of the following is correct regarding responsibility centers? A. Traceable costs, as used in a responsibility accounting system, only consists of variable costs. B. Common fixed costs should be allocated to a segment and used to evaluate the segment’s performance. C. Cost centers, profit centers, and investment centers are all considered responsibility centers. D. Responsibility centers are primarily utilized in companies with centralized operations. E. If a manager is held responsible for generating revenue, controlling costs, and efficiently investing...
An operating unit that is responsible for only costs is commonly referred to as an: Multiple Choice Ο Ο revenue center Ο profit center Ο
Which responsibility centers generate both revenues and costs? Question 20 options: Investment and profit centers Profit and cost centers Cost and investment centers Only profit centers A profit center is Question 21 options: a responsibility center that always reports a profit. a responsibility center that incurs costs and generates revenues. evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss center when operations do not meet the company's objectives.
18. Responsibility Centers. Petroleum Products, Inc., operates primarily in the United States and has several segments: 1. Accounting and finance: responsible for recording financial information and preparing financial reports. 2. Human resources: responsible for hiring employees and maintaining personnel records 3. Retail stores: responsible for sales prices and all costs within each store. 4. Advertising: responsible for promotional materials 5. Production: responsible for manufacturing company products. 6. International operations: acts as an independent segment responsible for all facets of the...
QUESTION 29 A company is analyzing the performance of responsibility centers. Controllable costs would be included in the performance reports of which of the following types of responsibility centers? Profit Centers No Yes Yes No Investment centers No A) B) C) D) Yes Yes A) ОВ) o C) o D) QUESTION 30 Profit center managers are often evaluated using return on investment (ROl) or residual income measures. O True False QUESTION 31 An opportunity cost is the potential benefit that...
Decentralization divides company operations into various reporting units. Most decentralized subunits can be described as one of four different types of responsibility centers. Requirements 1. Explain why companies decentralize. Describe some typical methods of decentralization. 2. List the four most common types of responsibility centers, and describe their responsibilities. Requirement 1. Explain why companies decentralize. Describe some typical methods of decentralization. Companies usually decentralize when they to manage the entire organization's daily operations. Decentralization is often based on: become too...
Managerial Accounting question?
18. Responsibility Centers. Petroleum Products, Inc., operates primarily in the United States and has several segments: Accounting and finance: responsible for recording financial information and preparing financial reports 2. Human resources: responsible for hiring employees and maintaining personnel records. 3. Retail stores: responsible for sales prices and all costs within each store. 4. Advertising: responsible for promotional materials. 5 Production: responsible for manufacturing company products 6. International operations: acts as an 1. independent segment responsible for all...
Which component of a nuclear power plant is responsible for controlling the fission reaction by absorbing neutrons? Reactor Coolant Steam generator Control rods
Ultimately, the project manager is responsible for controlling the project to finish under budget. determining the proper number of resources to complete the project on time. making sure the customer is satisfied. settling disputes between team members.
1. Managers in a cost center are held responsible for both the costs and volumes of inputs used to produce a product or provide a service. True False 2. Properly designed management control systems have both fixed compensation and contingent compensation. True False 3. Properly designed management control systems will eliminate fraudulent behavior by maximizing goal congruence within the organization. True False 4. A master budget consists of a one-year plan linked to (a) organizational goals, (b) strategic long-range profit...