A) A department or unit that incurs costs without directly generating revenues. B) A center in which a manager is responsible for using the center's assets to generate income for the center. C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. E) Costs incurred to produce two or more products at the same time. F)Costs that a manager can strongly influence or control. G)A department that incurs costs and generates revenues. H)Assigns managers the responsibility for costs and expenses under their control. A) A department or unit that incurs costs without directly generating revenues. B) A center in which a manager is responsible for using the center's assets to generate income for the center. C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. E) Costs incurred to produce two or more products at the same time. F)Costs that a manager can strongly influence or control. G)A department that incurs costs and generates revenues. H)Assigns managers the responsibility for costs and expenses under their control.

A) Incurs costs but does not directly generate revenues. B) Incurs costs and directly generates revenues. C) Has a manager who is evaluated solely on efficiency in controlling costs. D) Incurs only indirect costs and directly generates revenues. E) Incurs only indirect costs and generates revenues. A) Incurs costs but does not directly generate revenues. B) Incurs costs and directly generates revenues. C) Has a manager who is evaluated solely on efficiency in controlling costs. D) Incurs only indirect costs and directly generates revenues. E) Incurs only indirect costs and generates revenues.

Ice House Industries, Inc. has three operating departments: Cooking, Churning, and Freezing. Indirect factory costs for the current period were Administrative $560,000 and Maintenance $98,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied. $\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Cooking } \\ \text { Department } \end{array} & \begin{array} { c } \text { Churning } \\ \text { Department } \end{array} & \begin{array} { c } \text { Freezing } \\ \text { Department } \end{array} \\ \hline \begin{array} { l } \text { Number of } \\ \text { employees } \end{array} & 2,940 \text { employees } & 4,900 \text { employees } & 1,960 \text { employees } \\ \hline \text { Square feet occupied } & 33,250 \text { Sq. Ft. } & 38,000 \text { Sq. Ft } & 23,750 \text { Sq. Ft. } \\ \hline \end{array}$ -Based on the above data, determine the administrative cost allocated to each operating department of Ice House Industries, Inc. A Cooking: $\$ 168,000$$ \quad $ Churring: $\$ 280,000$ $ \quad $Freezing: $\$ 112,000$ B. Cooking: $\$ 186,666$$ \quad $ Churning: $\$ 186,666$ $ \quad $Freezing: $\$ 186,666$ C. Cooking: $\$ 112,000$ $ \quad $Churning: $\$ 280,000$ $ \quad $Freezing: $\$ 168,000$ D. Cooking: $\$ 280,000$ $ \quad $Churning: $\$ 112,000$ $ \quad $Freezing: $\$ 168,000$ E Cookine: $\$ 219,333$ $ \quad $Churnine: $\$ 219,333$ $ \quad $Freezing: $\$ 219,333$

The answer of Ice House Industries, Inc. has three operating...

A sawmill paid $70,000 for logs that produced 200,000 board feet of lumber in three different grades and amounts as follows: $\begin{array}{lll} \underline { \text { Grade }}&\underline { \text { Production }}&\underline { \text { Market Price }}\\ \text { Structural } & 25,000 \text { board feet } & \$ 1,350 / 1,000 \mathrm{bd} \text { ft. } \\ \text { No. 1 Common } & 75,000 \text { board feet } & \$ 750 / 1,000 \mathrm{bd} . \mathrm{ft} \\ \text { No. 2 Common } & 100,000 \text { board feet } & \$ 300 / 1,000 \mathrm{bd} \text {. } \end{array}$ How much of the $70,000 joint cost should be allocated to No.2 Common?

A) $0 B) $17,500 C) $23,333 D) $35,000 E) $70,000 A) $0 B) $17,500 C) $23,333 D) $35,000 E) $70,000

A) A department or unit that incurs costs without directly generating revenues. B) A center in which a manager is responsible for using the center's assets to generate income for the center. C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. E) Costs incurred to produce two or more products at the same time. F)Costs that a manager can strongly influence or control. G)A department that incurs costs and generates revenues. H)Assigns managers the responsibility for costs and expenses under their control. A) A department or unit that incurs costs without directly generating revenues. B) A center in which a manager is responsible for using the center's assets to generate income for the center. C) Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department. D) Costs readily traced to a specific department because they are incurred for the sole benefit of that department. E) Costs incurred to produce two or more products at the same time. F)Costs that a manager can strongly influence or control. G)A department that incurs costs and generates revenues. H)Assigns managers the responsibility for costs and expenses under their control.

Exam 9: Performance Measurement and Responsibility Accounting

The China Department of the Coulsen Department Store had sales of $282,000, cost of goods sold of $198,750, indirect expenses of $19,875, and direct expenses of $41,250 for the current period.What is the China Department's contribution to overhead as a percentage of sales?

(Essay)

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Question 101

Investment center

(Multiple Choice)

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Question 102

In producing oat bran, the joint cost of milling the oats into bran, oatmeal, and animal feed is considered a direct cost to the oat bran, because the oat bran cannot be produced without incurring the joint cost.

(True/False)

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Question 103

Indirect expenses

(Multiple Choice)

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Question 104

Investment center managers are responsible only for revenues and the costs of investment.

(True/False)

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Question 105

A company's international division had sales of $20 billion, net income of $1.5 billion, and average invested assets of $2 billion.What is this division's profit margin?

(Multiple Choice)

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Question 106

A profit center:

(Multiple Choice)

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Question 107

A company has two departments, Aa and Bb, that incur delivery expenses.An analysis of the total delivery expense of $9,000 indicates that Dept.Aa had a direct expense of $1,000 for deliveries.None of the $9,000 is a direct expense to Dept.Bb.The analysis also indicates that 60% of regular delivery requests originate in Dept.Aa and 40% in Dept.Bb.The delivery expenses that should be charged to Dept.Aa and Dept.Bb, respectively, are: Aa B b A \ 4,500 \ 4,500 B. \ 5,800 \ 3,200 C. \ 5,500 \ 3,500 D. \ 5,500 \ 4,500 E. \ 5,400 \ 3,600

(Short Answer)

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Question 108

Departmental accounting and responsibility accounting are related.

(True/False)

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Question 109

If the $450 cost of the 300 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A's share would be: A.$0 B.$180 C.$225 D.$300 E.$450

(Short Answer)

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Question 110

Which of the following is an example of a performance measure of the customer perspective that would be found in a balanced scorecard?

(Multiple Choice)

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Question 111

A ______________________________ accumulates and reports costs and expenses that a manager is responsible for, including budgeted amounts.

(Essay)

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Question 112

Costs that the manager has the power to determine or at least strongly influence are called:

(Multiple Choice)

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Question 113

A _____________________________ provides information for managers to use to evaluate the profitability or cost effectiveness of each department's activities.

(Short Answer)

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Question 114

Ice House Industries, Inc. has three operating departments: Cooking, Churning, and Freezing. Indirect factory costs for the current period were Administrative $560,000 and Maintenance $98,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied. Cooking Department Churning Department Freezing Department Number of employees 2,940 employees 4,900 employees 1,960 employees Square feet occupied 33,250 Sq. Ft. 38,000 Sq. Ft 23,750 Sq. Ft. -Based on the above data, determine the administrative cost allocated to each operating department of Ice House Industries, Inc. A Cooking: $\$ 168,000$ $\quad$ Churring: $\$ 280,000$ $\quad$ Freezing: $\$ 112,000$ B. Cooking: $\$ 186,666$ $\quad$ Churning: $\$ 186,666$ $\quad$ Freezing: $\$ 186,666$ C. Cooking: $\$ 112,000$ $\quad$ Churning: $\$ 280,000$ $\quad$ Freezing: $\$ 168,000$ D. Cooking: $\$ 280,000$ $\quad$ Churning: $\$ 112,000$ $\quad$ Freezing: $\$ 168,000$ E Cookine: $\$ 219,333$ $\quad$ Churnine: $\$ 219,333$ $\quad$ Freezing: $\$ 219,333$

(Short Answer)

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Question 115

A sawmill paid $70,000 for logs that produced 200,000 board feet of lumber in three different grades and amounts as follows: Structural 25,000 board feet \ 1,350/1,000 ft. No. 1 Common 75,000 board feet \ 750/1,000. No. 2 Common 100,000 board feet \ 300/1,000 . How much of the $70,000 joint cost should be allocated to No.2 Common?

(Multiple Choice)

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Question 116

Cost center

(Multiple Choice)

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Question 117

How do companies decide what allocation bases to use to allocate indirect costs to departments?

(Essay)

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(38)

Question 118

Return on investment for a given investment center can be split into two components: profit margin and investment turnover.

(True/False)

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Question 119

A _______________________ incurs costs and generates revenues.

(Short Answer)

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(33)

Question 120

The China Department of the Coulsen Department Store had sales of $282,000, cost of goods sold of $198,750, indirect expenses of $19,875, and direct expenses of $41,250 for the current period.What is the China Department's contribution to overhead as a percentage of sales?

Investment center

In producing oat bran, the joint cost of milling the oats into bran, oatmeal, and animal feed is considered a direct cost to the oat bran, because the oat bran cannot be produced without incurring the joint cost.

Indirect expenses

Investment center managers are responsible only for revenues and the costs of investment.

A company's international division had sales of $20 billion, net income of $1.5 billion, and average invested assets of $2 billion.What is this division's profit margin?

A profit center:

Departmental accounting and responsibility accounting are related.

If the $450 cost of the 300 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A's share would be: A.$0 B.$180 C.$225 D.$300 E.$450

Which of the following is an example of a performance measure of the customer perspective that would be found in a balanced scorecard?

A ______________________________ accumulates and reports costs and expenses that a manager is responsible for, including budgeted amounts.

Costs that the manager has the power to determine or at least strongly influence are called:

A _____________________________ provides information for managers to use to evaluate the profitability or cost effectiveness of each department's activities.

Cost center

How do companies decide what allocation bases to use to allocate indirect costs to departments?

Return on investment for a given investment center can be split into two components: profit margin and investment turnover.

A _______________________ incurs costs and generates revenues.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

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