When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: A. A cost center B. A profit center C. An investment center D. A service department

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

No Ai Which of the following errors will cause the trial balance to not balance?A. Omission of a transactionB. Entry posted twiceC. Transposing digits in one sideD. Debiting one account and crediting another

Don't use ChatGPT!! Which of the following errors will cause the trial balance to not balance?A. Omission of a transactionB. Entry posted twiceC. Transposing digits in one sideD. Debiting one account and crediting another

Which of the following is a temporary account?A. Retained EarningsB. Service RevenueC. Accounts PayableD. Inventory

Answer 2

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 14, Problem 1SEQ

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called:
A. A cost center
B. A profit center
C. An investment center
D. A service department

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer to Problem 1SEQ

B. A Profit Center

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directlyInvestment Center:

Investment center takes care of revenue, cost and investment

Profit Center:

Profit center generate revenue and incur expenses

To choose:

The correct option for the center

Answer 12

Answer to Problem 1SEQ

B. A Profit Center

Answer 13

Explanation of Solution

Explanation for correct answer:

Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence the correct option is B.

Explanation for incorrect answers:

A. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

C. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

D. Profit center generate revenue and incur expenses and its decisions affect costs and revenues. Hence this option is incorrect.

Answer 14

Ch. 14 - When the manager has the responsibility and...Ch. 14 - The Accounts Payable Department has expenses of...Ch. 14 - Division A of Kern Co. has sales of $350,000, cost...Ch. 14 - Division L of Liddy Co. has a return on investment...Ch. 14 - Which approach to transfer pricing uses the price...Ch. 14 - Prob. 1CDQ Ch. 14 - Prob. 2CDQ Ch. 14 - Prob. 3CDQ Ch. 14 - Prob. 4CDQ Ch. 14 - Weyerhaeuser developed a system that assigns...

When the manager has the responsibility and authority to make decisions that affect Costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: A. A cost center B. A profit center C. An investment center D. A service department

Videos

Answer to Problem 1SEQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 14 Solutions