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Match the Following Definitions with the Appropriate Terms

Question 141

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Match the following definitions with the appropriate terms

Premises:
A department or unit that incurs costs without directly generating revenues.
A center in which a manager is responsible for using the center's assets to generate income for the center.
Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department.
Costs readily traced to a specific department because they are incurred for the sole benefit of that department.
Costs incurred to produce two or more products at the same time.
Costs that a manager can strongly influence or control.
A department that incurs costs and generates revenues.
Assigns managers the responsibility for costs and expenses under their control.
Responses:
Direct expenses
Responsibility accounting system
Profit center
Controllable costs
Indirect expenses
Cost center
Joint cost
Investment center

Correct Answer:

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