Question 1

A ______________________ incurs costs without directly generating revenues.

Accepted Answer

The answer of A ______________________ incurs costs without directly generating...

Question 2

A company rents a building with a total of 50,000 square feet,which are evenly divided between two floors.The company allocates the rent for space on the first floor at twice the rate of space on the second floor.The total monthly rent for the building is $30,000.How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?

Accepted Answer

A) $6,000. 
B) $5,000. 
C) $3,000. 
D) $4,000. 
E) $2,000. 
A) $6,000. 
B) $5,000. 
C) $3,000. 
D) $4,000. 
E) $2,000.

Question 3

The process of preparing departmental income statements begins with allocating service department expenses.

Accepted Answer

A) True 
 B)False

Question 4

A granary allocates the cost of unprocessed wheat to the production of feed,flour,and starch.For the current period,unprocessed wheat was purchased for $240,000,and the following quantities of product and sales revenues were produced.   How much of the $240,000 cost should be allocated to feed?

Accepted Answer

A) $24,500. 
B) $84,000. 
C) $90,000. 
D) $70,000. 
E) $200,000. 
A) $24,500. 
B) $84,000. 
C) $90,000. 
D) $70,000. 
E) $200,000.

Question 5

Profit margin for an investment center measures:

Accepted Answer

A) Investment center income earned per dollar of sales. 
B) How efficiently an investment center generates sales from its invested assets. 
C) Investment center income compared to target investment center income. 
D) Departmental contribution to overhead. 
E) Investment center income generated from its invested assets. 
A) Investment center income earned per dollar of sales. 
B) How efficiently an investment center generates sales from its invested assets. 
C) Investment center income compared to target investment center income. 
D) Departmental contribution to overhead. 
E) Investment center income generated from its invested assets.

Question 6

A __________________________ helps control costs and expenses and evaluates managers' performance by assigning costs and expenses to the managers responsible for controlling them.

Accepted Answer

responsibi

Question 7

___________________ are costs incurred to produce or purchase two or more products at the same time.

Accepted Answer

The answer of ___________________ are costs incurred to produce or...

Question 8

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled,while maintenance and utilities are allocated per square feet of the classrooms.Based on the information below,what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollar)if administrative costs for the school were $50,000,maintenance fees were $12,000,and utilities were $6,000?

Accepted Answer

A) $8,929. 
B) $17,000. 
C) $18,500. 
D) $22,667. 
E) $11,111. 
A) $8,929. 
B) $17,000. 
C) $18,500. 
D) $22,667. 
E) $11,111.

Question 9

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland.It reports the total amounts of direct and indirect expenses for the four departments.Purchasing department expenses are allocated to the operating departments on the basis of purchase orders.Maintenance department expenses are allocated based on square footage.Compute the amount of Maintenance department expense to be allocated to Fabrication.

Accepted Answer

A) $6,400. 
B) $9,900. 
C) $8,100. 
D) $9,000. 
E) $25,600. 
A) $6,400. 
B) $9,900. 
C) $8,100. 
D) $9,000. 
E) $25,600.

Question 10

An expense that is readily traced to a department because it is incurred for that department's sole benefit is a(n):

Accepted Answer

A) Common expense. 
B) Indirect expense. 
C) Direct expense. 
D) Administrative expense. 
E) Recurring expense. 
A) Common expense. 
B) Indirect expense. 
C) Direct expense. 
D) Administrative expense. 
E) Recurring expense.

Question 11

The investment center return on investment is ________________ divided by ________.
answers must appear in this order

Accepted Answer

investments center n

Question 12

Costs that the manager does not have the power to determine or at least significantly affect are:

Accepted Answer

A) Variable costs. 
B) Uncontrollable costs. 
C) Indirect costs. 
D) Direct costs. 
E) Joint costs. 
A) Variable costs. 
B) Uncontrollable costs. 
C) Indirect costs. 
D) Direct costs. 
E) Joint costs.

Question 13

The concepts of direct expenses and controllable costs are essentially the same;also,indirect expenses and uncontrollable costs are essentially the same.

Accepted Answer

A) True 
 B)False

Question 14

Departmental information is usually distributed to the public as part of the company's annual report and footnotes.

Accepted Answer

A) True 
 B)False

Question 15

A _______________________ generates revenues and incurs costs.

Accepted Answer

The answer of A _______________________ generates revenues and incurs costs....

Question 16

Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period:   The amount of the total office expenses that should be allocated to Grinding for the current period is:

Accepted Answer

A) $35,750. 
B) $45,000. 
C) $54,250. 
D) $90,000. 
E) $600,000. 
A) $35,750. 
B) $45,000. 
C) $54,250. 
D) $90,000. 
E) $600,000.

Question 17

Departmental contribution to overhead is the amount of sales for that department less its direct expenses.

Accepted Answer

A) True 
 B)False

Question 18

The Dark Chocolate Division of Yummy Snacks,Inc.had the following operating results last year:   Dark Chocolate expects identical operating results this year.The Dark Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually.Assume that the Peanut Butter Division of Yummy Snacks wants to purchase an additional 20,000 pounds of chocolate from the Dark Chocolate Division.Assume that the Dark Chocolate Division is currently operating at its capacity of 200,000 pounds of chocolate.Also assume again that the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from Dark Chocolate.Under these conditions,what amount per pound of chocolate would Dark Chocolate have to charge Peanut Butter in order to maintain its current profit?

Accepted Answer

A) $0.40 per pound 
B) $0.08 per pound 
C) $0.15 per pound 
D) $0.25 per pound 
E) $0.30 per pound 
A) $0.40 per pound 
B) $0.08 per pound 
C) $0.15 per pound 
D) $0.25 per pound 
E) $0.30 per pound

Question 19

Ultimo Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:

Accepted Answer

A) $210,000. 
B) $350,000. 
C) $10,000. 
D) $260,000. 
E) $150,000. 
A) $210,000. 
B) $350,000. 
C) $10,000. 
D) $260,000. 
E) $150,000.

Question 20

A college uses advisors who work with all students in all divisions of the college.The most useful allocation basis for the salaries of these employees would likely be:

Accepted Answer

A) number of classes offered in each division. 
B) student graduation rate. 
C) square footage of each division. 
D) number of students advised from each division. 
E) relative salaries of division heads. 
A) number of classes offered in each division. 
B) student graduation rate. 
C) square footage of each division. 
D) number of students advised from each division. 
E) relative salaries of division heads.

Exam 24: Performance Measurement and Responsibility Accounting

A ______________________ incurs costs without directly generating revenues.

The process of preparing departmental income statements begins with allocating service department expenses.

A granary allocates the cost of unprocessed wheat to the production of feed,flour,and starch.For the current period,unprocessed wheat was purchased for $240,000,and the following quantities of product and sales revenues were produced. How much of the $240,000 cost should be allocated to feed?

Profit margin for an investment center measures:

A __________________________ helps control costs and expenses and evaluates managers' performance by assigning costs and expenses to the managers responsible for controlling them.

___________________ are costs incurred to produce or purchase two or more products at the same time.

An expense that is readily traced to a department because it is incurred for that department's sole benefit is a(n):

The investment center return on investment is ________________ divided by ________. answers must appear in this order

Costs that the manager does not have the power to determine or at least significantly affect are:

The concepts of direct expenses and controllable costs are essentially the same;also,indirect expenses and uncontrollable costs are essentially the same.

Departmental information is usually distributed to the public as part of the company's annual report and footnotes.

A _______________________ generates revenues and incurs costs.

Departmental contribution to overhead is the amount of sales for that department less its direct expenses.

Ultimo Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:

A college uses advisors who work with all students in all divisions of the college.The most useful allocation basis for the salaries of these employees would likely be:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters

The investment center return on investment is ________ divided by . answers must appear in this order