Chapter 9, Problem 4QS

In each blank next to the following terms, place the identifying letter of its best description.

1. _____Cost center	A. Incurs costs without directly yielding revenues.
2. _____Investment center	B. Provides information used to evaluate the performance of a department.
3. _____Departmental accounting system	C. Holds manager responsible for revenues, costs, and investments.
4. _____operating department	D. Engages directly in manufacturing or in making sales directly to customers.
5. _____Profit center	E. Does not directly manufacture products but contributes to profitability of the entire company.
6. _____Responsibility accounting system	F. Incurs costs and also generates revenues.
7. _____Service department	G. Provides information used to evaluate the performance of a department manager.