PROBLEM 1: COST CENTER: ABC Corporation, a corporation with fully decentralized its operations, is evaluating its managers. The manager of its customer service department is currently being evaluated for the month just ended. Relevant costs are as follows: Manager salary of P50,000; Staff salaries of P60,000; Rent of P100,000; Utilities of P20,000 (P2,000 is the minimum due to the location); Supplies of P10,000; Depreciation of P80,000; other administrative costs - controllable of P12,000; and other administrative costs - non-controllable of P20,000. How much is the cost relevant to the performance measurement of the cost manager?

PROBLEM 1: COST CENTER: ABC Corporation, a corporation with fully decentralized its operations, is evaluating its managers. The manager of its customer service department is currently being evaluated for the month just ended. Relevant costs are as follows: Manager salary of P50,000; Staff salaries of P60,000; Rent of P100,000; Utilities of P20,000 (P2,000 is the minimum due to the location); Supplies of P10,000; Depreciation of P80,000; other administrative costs - controllable of P12,000; and other administrative costs - non-controllable of P20,000. How much is the cost relevant to the performance measurement of the cost manager?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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