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
Managers in which of the following responsibility centers are held responsible forprofits? (You may select more than one answer.)a. Revenue centersb. Cost centersc. Profit centersd. Investment centers
Distinguish between a cost center, a profit center, and an investment center
What is the primary purpose of a cost center? A) To generate revenue B) To control cost C) To manage investments D) To determine profits
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
In which of the following centers are managers responsible for controlling costs and generating revenue? Group of answer choices Revenue center Cost center Profit center Investment center
A segment of a business responsible for both revenues and expenses would be called: Multiple Choice a cost center. a profit center. residual income. an investment center.
A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called ________. A) residual income B) a profit center C) a discretionary cost center D) return on investment
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
____ 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center ____ 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin ____ 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 ____ 4.Remark…
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

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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.