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Match the Appropriate Definition a Through H with the Following

Question 10

Matching

Match the appropriate definition a through h with the following terms:

Premises:

Responses:

Departmental contribution to overhead

A department whose manager is judged on the ability to generate revenues in excess of the department's costs.

Profit center

Compares actual and budgeted costs and expenses under the control of a manager.

Cost center

Provides information that management can use to evaluate the performance of a department's managers.

Investment center

A center whose manager is responsible for using the center's assets to generate income for the center.

Performance report

Departmental sales in excess of its direct costs and expenses.

Responsibility accounting system

A department whose manager is judged on the ability to control costs by keeping them within a satisfactory range.

Premises:

Departmental contribution to overhead

Profit center

Cost center

Investment center

Performance report

Responsibility accounting system

Responses:

A department whose manager is judged on the ability to generate revenues in excess of the department's costs.

Compares actual and budgeted costs and expenses under the control of a manager.

Provides information that management can use to evaluate the performance of a department's managers.

A center whose manager is responsible for using the center's assets to generate income for the center.

Departmental sales in excess of its direct costs and expenses.

A department whose manager is judged on the ability to control costs by keeping them within a satisfactory range.

Correct Answer:

Premises:

Responses:

Departmental contribution to overhead

Profit center

Cost center

Investment center

Performance report

Responsibility accounting system