Question 1

The manager of a profit center is responsible for generating revenues and managing the center's invested capital.

Accepted Answer

A) True 
 B)False

Question 2

Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers.The sales office is a revenue center and prepares a monthly responsibility report.The following information is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c } 
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,700 & & & \$ 30,000 & & & \$ 40,800 \
\hline 36 \text { inch long } & 40,200 & & & 42,200 & & & 33,000 \
\hline 36 \text { inch short } & 36,000 & & & 33,100 & & & 31,100 \
\hline 32 \text { inch } & 19,100 & & & 20,900 & & & 28,000 \
\hline
\end{array}
\end{array}$$What is the flexible budget variance for the 40-inch pipe?

Accepted Answer

A) $1700 U 
B) $10,800 F 
C) $10,800 U 
D) $1700 F 
A) $1700 U 
B) $10,800 F 
C) $10,800 U 
D) $1700 F

Question 3

Decentralized companies often lead to diminished customer relations and slower customer response time.

Accepted Answer

A) True 
 B)False

The manager of a profit center is responsible for generating revenues and managing the center's invested capital.

Decentralized companies often lead to diminished customer relations and slower customer response time.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 24: Responsibility Accounting and Performance Evaluation

The manager of a profit center is responsible for generating revenues and managing the center's invested capital.

Decentralized companies often lead to diminished customer relations and slower customer response time.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Short-Term Business Decisions

Capital Investment Decisions

Filters