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Match the Appropriate Definition with the Following Terms

Question 31

Matching

Match the appropriate definition with the following terms:

Premises:

Responses:

Indirect expenses

Costs incurred to produce two or more products at the same time.

Joint cost

A center in which a manager is responsible for using the center's assets to generate income for the center.

Controllable costs

A department that incurs costs and generates revenues.

Cost center

A department or unit that incurs costs without directly generating revenues.

Investment center

Costs readily traced to a specific department because they are incurred for the sole benefit of that department.

Direct expenses

Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department.

Profit center

Costs which a manager can strongly influence or control.

Premises:

Indirect expenses

Joint cost

Controllable costs

Cost center

Investment center

Direct expenses

Profit center

Responses:

Costs incurred to produce two or more products at the same time.

A center in which a manager is responsible for using the center's assets to generate income for the center.

A department that incurs costs and generates revenues.

A department or unit that incurs costs without directly generating revenues.

Costs readily traced to a specific department because they are incurred for the sole benefit of that department.

Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department.

Costs which a manager can strongly influence or control.

Correct Answer:

Premises:

Responses:

Indirect expenses

Joint cost

Controllable costs

Cost center

Investment center

Direct expenses

Profit center