84 most manufacturing plants are considered cost centers because the have control ov 4298887
84. Most manufacturing plants are considered cost centers because the have control over
A. sales and costs.
B. fixed assets and costs.
C. costs only.
D. fixed assets and sales.
85. The following is a measure of a manager’s performance working in a cost center.
A. budget performance report
B. rate of return and residual income measures
C. divisional income statements
D. balance sheet
86. A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n):
A. profit center
B. investment center
C. volume center
D. cost center
87. In a profit center, the department manager has responsibility for and the authority to make decisions that affect:
A. not only costs and revenues, but also assets invested in the center
B. the assets invested in the center, but not costs and revenues
C. both costs and revenues for the department or division
D. costs and assets invested in the center, but not revenues
88. Which of the following expenses incurred by the sporting goods department of a department store is a direct expense?
A. Depreciation expense–office equipment
B. Insurance on inventory of sporting goods
C. Uncollectible accounts expense
D. Office salaries
89. Which of the following expenses incurred by a department store is an indirect expense?
A. Insurance on merchandise inventory
B. Sales salaries
C. Depreciation on store equipment
D. Salary of vice-president of finance
90. In a profit center, the manager has responsibility and authority for making decisions that affect:
91. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed:
A. miscellaneous administrative expenses
B. direct expenses
C. indirect expenses
D. operating expenses
92. In evaluating the profit center manager, the income from operations should be compared:
A. across profit centers
B. to historical performance or budget
C. to the competition's net income
D. to the total company earnings per share
93. Income from operations of the Commercial Aviation Division is $2,225,000. If income from operations before service department charges is $3,250,000:
A. operating expenses are $1,025,000
B. total service department charges are $1,025,000
C. noncontrollable charges are $1,025,000
D. direct manufacturing charges are $1,025,000