The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division. To prepare : The responsibility report.

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Answer 1

Question

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

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Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual.Prepare a responsibility report for the Water Division for the year ending December 31, 2020. TORRES COMPANYWater DivisionResponsibility ReportFor the Year Ended December 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option…

Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's Manufacturing Income Statement Month ending August 31, 2019 Dept. A Dept. B Sales $22,000 $51,000 Cost of Goods Sold 10,560 26,520 Gross profit $11,440 $24,480 Utility expenses 1,000 3,200 Wages expense 5,500 10,200 Costs allocated from Corporate 2,200 15,000 Total expenses $8,700 $28,400 Operating Income/(loss) $ ? ? Operating income/(loss) % ? ? Which of these costs may need further…

7. Responsibility Accounting: a. What is a cost center? Give an example of a cost center b. What is a Profit center? Give an example of a profit center c. What is an investment center? Give an example of an investment center d. What is management by exception: e. The Hydride Division of Murdoch Corporation is an investment center. It has $1,000,000 of operating assets. During 2022, the Hydride Division earned operating income of $400,000 on $5,000,000 of sales. Murdoch's companywide return on investment or desired rate of return is approximately 20% SHOW WORK FOR CREDIT! 1. What is the ROI? 2. What is the margin? 3. What is the turnover? 4. What is the residual income?

Answer 2

Question

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

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Answer 3

Question

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

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Answer 4

Question

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

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Answer 5

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

Answer 6

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

Answer 7

Chapter 25, Problem 4PSA

a

To determine

Introduction:

The responsibility report represents the preparation of statements reflecting costs and revenues related to the responsibility areas. For example, responsibility report of the production department, packaging and finishing department, and many more. It basically represents the statement of controllable costs related to a particular unit or division.

To prepare: The responsibility report.

Answer 8

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

Answer 9

b

To determine

Introduction:

The responsibility report reflects the details of controllable costs and revenue of a particular department, division, or segment. It is usually prepared at each level of the department to reflect their respective responsibility area.

: The efficiency of management in controlling costs.

Answer 10

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

Answer 11

c

To determine

Introduction:

Management divides overhead costs as controllable and non-controllable. Those costs that are out of the manipulation of the management come under the category of non-controllable costs. On the other side, costs that are easy to increase or decrease comes under the category of controllable costs.

: The excluded costs from the responsibility report and their reason for exclusion.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 25 - Prob. 1Q Ch. 25 - Prob. 2Q Ch. 25 - Prob. 3Q Ch. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5Q Ch. 25 - Prob. 6Q Ch. 25 - Prob. 7Q Ch. 25 - Prob. 8Q Ch. 25 - Prob. 9Q Ch. 25 - Prob. 10Q

Solution Summary: The author explains that the responsibility report reflects the details of controllable costs and revenue of a particular unit or division.

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