Cost center: Cost center incurs costs and does not generate the revenue directly Investment Center: Investment center takes care of revenue, cost and investment Departmental Accounting System: This is an accounting system which records the transactions of a particular department and shows its performance. Operating Department: Operating departments conducts the operations of business like manufacturing, Sales etc. Profit Center: Profit center generate revenue and incur expenses Responsibility Accounting System: This is an accounting system which shows responsibility for managers. Service Department: Service departments are assisting departments for operating department. Service departments are not directly engaged in main operations but they perform assisting works. To Identify: The terms for given descriptions

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Chapter 24, Problem 1QS

To determine

Concept Introduction:

Cost center:

Cost center incurs costs and does not generate the revenue directly

Investment Center:

Investment center takes care of revenue, cost and investment

Departmental Accounting System:

This is an accounting system which records the transactions of a particular department and shows its performance.

Operating Department:

Operating departments conducts the operations of business like manufacturing, Sales etc.

Profit Center:

Profit center generate revenue and incur expenses

Responsibility Accounting System:

This is an accounting system which shows responsibility for managers.

Service Department:

Service departments are assisting departments for operating department. Service departments are not directly engaged in main operations but they perform assisting works.

To Identify:

The terms for given descriptions

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