9 Which of the following best describes a segment of abusiness responsible for both revenues and costs?Select one:Оa. An investment centre.Оb. A residual income centrec. A cost centre.d. A profit centre.

Detailed explanation: 1. Cost CentreA cost centre is a part of an organization that does not…

Answered: Which of the following best describes a…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2DQ: Differentiate between a profit center and an investment center.

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Similar questions

Which of the following is not a type of responsibility center? A. concentrated cost center B. investment center C. profit center D. cost center
A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called_______. A. return on investment B. residual income C. a profit center D. a discretionary cost center
Distinguish between a cost center, a profit center, and an investment center
Which of the following is the format of the income statement that is MOST useful in decision-making? Select one: A. Multiple-step format B. Absorption costing format C. Single-step format D. Contribution margin format
A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n) _____ center. a.investment b.cost c.profit d.volume
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
(Management Accounting) When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________. A) the proportion of indirect costs to direct costs B) the extent a particular cost is caused by a cost object C) multiple cost drivers D) the proportion of direct costs to indirect costs
A cost which changes in proportion to changes in volume of activity is called a: * a. fixed cost b. controllable cost c. variable cost d. opportunity cost
3. Listed are the possible answers
Which of the following statements is true? (You may select more than one answer.)a. A common cost is one type of direct cost.b. A sunk cost is usually a differential cost.c. Opportunity costs are not usually recorded in the accounts of an organization.d. A particular cost may be direct or indirect depending on the cost object.
Match each of the following type of responsibility centers with what all they are accountable for. Cost Center Profit Center Investment Center Revenue Center
Under operations analysis, how do you describe cost analysis?

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Which of the following best describes a segment of a business responsible for both revenues and costs? Select one: О a. An investment centre. О b. A residual income centre c. A cost centre. d. A profit centre.