Concept explainers
a
Introduction:
The responsibility report compares the actual cost with the budgeted ones to evaluate the performance of the manager of a cost center. It represents the statement of controllable costs related to a particular unit or division.
To prepare: The Report D.
b
Introduction:
The responsibility report represents the statement prepared at each level of management. It reflects the standard and actual controllable costs being incurred during the period.
To prepare: Report C.
c
Introduction:
Management at each level and department of the organization prepares a statement that reflects the efficiency in controlling the cost incurred in their respective department. Report B is usually prepared by the vice president. This report states the total costs being incurred in all the divisions of the organization.
To prepare: Report B.
d
Introduction:
Report A represents the responsibility report prepared by the president. This report includes all the total costs incurred in each department of the company. It helps in determining the overall efficiency of the company in controlling the cost.
To prepare: Report A.
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Chapter 25 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
- Give me true answer this general accounting questionarrow_forwardCarry Manufacturing Inc. had a variable costing operating income of $95,200 in 2018. Ending inventory decreased during 2018 from 50,000 units to 47,000 units. During both 2017 and 2018, fixed manufacturing overhead was $900,000, and 120,000 units were produced. Determine the absorption costing operating income for 2018.arrow_forwardIf revenue = $135 and variable cost revenue, then contribution margin = 45% of = $79.25. a. True. b. False.arrow_forward
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- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
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