Solved

Match the Appropriate Definition (A)through (H)with the Following Terms

Question 141

Matching

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

Premises:
Cost center
Profit center
Responsibility accounting system
Investment center
Departmental contribution to overhead
Cost driver
Performance report
Indirect expenses
Responses:
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.
A factor that causes the cost of an activity to go up and down.
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.
A department whose manager is judged on the ability to generate revenues in excess of the department's costs.
Costs that are incurred for the joint benefit of more than one department.

Correct Answer:

Cost center
Profit center
Responsibility accounting system
Investment center
Departmental contribution to overhead
Cost driver
Performance report
Indirect expenses
Related Questions