Question 1

A(n) ___________is a department that generates revenues and incurs costs and whose manager is also responsible for using the center's assets to generate income for the center.

Accepted Answer

The answer of A(n) ___________is a department that generates revenues...

Question 2

________ are costs incurred to produce or purchase two or more products at the same time.

Accepted Answer

The answer of ________ are costs incurred to produce or...

Question 3

The ________ is a report of the amount of sales less direct expenses for a department.

Accepted Answer

The answer of The ________ is a report of the...

Question 4

In the two-stage cost allocation, ________ costs are allocated to operating departments, and the operating department costs are allocated to .

Accepted Answer

The answer of In the two-stage cost allocation, ________ costs...

Question 5

The first three steps in preparing a departmental income statement are: (1) accumulate of the department, (2) allocate ________ to the department, and (3) allocate ________ to the operating departments.

Accepted Answer

The answer of The first three steps in preparing a...

Question 6

The investment center return on investment is ________ divided by ________.

Accepted Answer

The answer of The investment center return on investment is...

Question 7

Match between columns
                        Premises:  Investment center
 Performance report
 Cost center
 Departmental contribution to overhead
 Profit center
 Responsibility accounting system

Accepted Answer

The Answer of A department whose manager is judged on is...

Question 8

Match between columns
                        Premises:  Direct expenses
 Profit center
 Controllable costs
 Indirect expenses
 Cost center
 Joint cost
 Investment center

Accepted Answer

The Answer of A department or unit that incurs costs is...

Quiz 24: Performance Measurement and Responsibility Accounting

A(n) ___________is a department that generates revenues and incurs costs and whose manager is also responsible for using the center's assets to generate income for the center.

________ are costs incurred to produce or purchase two or more products at the same time.

The ________ is a report of the amount of sales less direct expenses for a department.

In the two-stage cost allocation, ________ costs are allocated to operating departments, and the operating department costs are allocated to .

The first three steps in preparing a departmental income statement are: (1) accumulate of the department, (2) allocate to the department, and (3) allocate to the operating departments.

The investment center return on investment is divided by .

Match the following terms with the appropriate definition

Match the following terms with the appropriate definition