Which of the following statements is true? I. A packaging department is most likely a cost center. II. In a profit center, the manager is most likely in-charge of investments, revenues and costs. III. The cafeteria in the college is most likely a profit center. IV. A business unit within a business is an example of a revenue center a. All but II b. I only c. All statements are true d. All but II and III e. I and II only Clear my choice

Which of the following statements is true? I. A packaging department is most likely a cost center. II. In a profit center, the manager is most likely in-charge of investments, revenues and costs. III. The cafeteria in the college is most likely a profit center. IV. A business unit within a business is an example of a revenue center a. All but II b. I only c. All statements are true d. All but II and III e. I and II only Clear my choice

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 1EB: Assume you have been hired by Cabelas Sporting Goods. As part of your new role in the accounting...

See similar textbooks

Related questions

Q: Example Ltd is a manufacturer. Which of the following is an example of the control function in…

A: Answer: Developing corrective actions in response to lower than expected production levels.

Q: Manufacturing Accounting is different from Financial Accounting...what is the nature and purpose of…

A: Departmental accounting is system of bookkeeping where the transactions of all the departments…

Q: The goal of operations managers in the services-providing sector is the same as in the…

A: Answer:- Operations management:- Operations management is a branch of management that deals with…

Q: The role of management accounting in problem solving involves: Select one: O A. The recording of…

A: Management accounting means keeping books of accounts and records for the purpose of providing…

Q: One of the basic purposes of managerial accounting is to provide information to various management…

A: Answer: Managerial accounting is the accounting method that generates the reports that helps the…

Q: The cost management information system provides information * A. that the accountant needs to…

A: Answer: The cost management information system provides information * B. that the manager…

Q: b. Classification of costs may be based on the information needs of management and their nature.…

A: Introduction: The term cost in accounting refers to the monetary worth of expenditures for natural…

Q: Which of the following statements are true? a. Screening projects of the company and determining…

A: All the four statements are with regards to the role of financial manager in the organization. The…

Q: Managerial accounting is an activity that helps managers determine the costs of an organization's…

A: Managerial accounting is a process of analysing financial data , make interpretation of that data…

Q: In a decentralized accounting system, a company that gives a manager responsibility over revenues,…

A: Cost Center: The centre where manager shall be responsible for the controlling costs incurrence in…

Q: How can you implement responsibility accounting in a small business?

A: Responsibility accounting is a management control system that focuses on measuring the performance…

Q: When you look at the organizational structure of ABC Inc., you notice that the Marketing department…

A: c) Functional

Q: All of the following are functions of managerial accounting EXCEPT: a. balancing b. planning…

A: Managerial accounting used to analysis of financial information and communicated to managers to…

Q: What is Customer Support Services in functions of marketing? A. The first impressions your produc B.…

A: Customer Support Services, as part of the functions of marketing, involve the provision of…

Q: Why are companies divided into departments for the purpose of management control? What are some of…

A: A business is normally organized by its functions, e.g. marketing department, accounts department,…

Q: Assume you have just been hired as the management accountant in charge of providing your firm’s…

A: Value chain is the model of business, which states the activities full range required to create the…

Q: For each office or business segment, indicate which type of Responsibility Center it is: a. Quality…

A: Let's go into further depth about each case so that we can offer a more comprehensive explanation:a.…

Q: - Research and development (R&D), production, and customer service are business functions that are…

A: Business functions are the numerous tasks or procedures carried out by an organization to accomplish…

Q: is not an objective of managerial accounting? a. To prepare external reports for investors,…

A: Management accounting is important because it help us to analyse in order to make better decisions…

Q: Identify the following statements as either True or False: 1. Financial accounting reports pertain…

A: Accounting is an art of systematically recording, classifying and summarising financial transactions…

Q: 2. LO 1.1 There are individuals who are under the impression that managerial accounting provides…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Define responsibility accounting, and describe the four types of responsibility centers. How can you…

A: The goal of responsibility accounting is to establish an accountability structure within the company…

Q: Value chain classifications Match each of the following cost items with the value chain business…

A: Value Chain Analysis is an inbound logistics that includes a range of activities like receiving,…

Question

Which of the following statements is true?

I. A packaging department is most likely a cost center.

II. In a profit center, the manager is most likely in-charge of investments, revenues and costs.

III. The cafeteria in the college is most likely a profit center.

IV. A business unit within a business is an example of a revenue center

All but II

I only

All statements are true

All but II and III

I and II only

Clear my choice

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What distinguishes a profit center from a cost center? a. Profit centers have revenues and expenses b. Profit centers have personnel costs Cc. ost centers are on the second floor d. Profit centers are the most important operations in the business
9
The accounting department for Target Stores may be classified as a(n) profit center. revenue center. cost center. investment center.
The cost management information system provides information * A. that the accountant needs to prepare the financial statements. B. that the manager needs to effectively manage the firm. C. that the manager needs to effectively manage not-for-profit organization. D. b and c.
what is the answer for each one please
Assume you have been hired by Cabelas Sporting Goods. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Cabelas organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.
Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitability
____ 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…
Revenue Cycle is:Select one:a. None of the aboveb. A recurring set of business activities and related to the process starting from finalizing product design and finishing off at cost accounting.c. A recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services.d. A recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.
1. Customer profitability analysis allows managers to do which of the following? a. Identify the closest competitor. b. Sell to higher end customers. c. Manage each customer's costs-to-serve. d. Focus solely on service calls. 2. What is the focus of operational control? a. Long-term operating performance. b. The profitability of the company. c. The activities of company executives. d. Short-term operating performance. 3. The objectives of management control of the manager include: a. Cost, quality, and functionality. b. Management by objectives. c. Management by exception. d. Motivation, incentive, and fairness. 4. Cost allocation of costs for shared services in an organization is intended to remind managers of: a. The cost and value of using shared resources. b. How much capacity a firm has. c. Manufacturing cycle time. d. Variable costing income calculations. 5. The method for directly measuring the value of a firm's equity is: a. Market value. b. Sales multiple. c. Earnings-based…
Enter the letter of each system principle in the blank next to its best description. A. Control principle C. Compatibility principle E. Cost-benefit principle B. Relevance principle D. Flexibility principle 1. The accounting information system helps monitor activities. 2. The accounting information system conforms to the company’s business activities. 3. The accounting information system changes in response to technological advances and competitive pressures. 4. Affects all other accounting information system principles. 5. The accounting information system provides timely information for effective decision making.
Can you help me with this question