Question 1

A department probably would be considered for elimination if it had

Accepted Answer

A)  a positive contribution margin and a net income from operations. 
B)  a positive contribution margin and a net loss from operations. 
C)  a negative contribution margin and a net loss from operations. 
D)  a net loss,regardless of the contribution margin. 
A)  a positive contribution margin and a net income from operations. 
B)  a positive contribution margin and a net loss from operations. 
C)  a negative contribution margin and a net loss from operations. 
D)  a net loss,regardless of the contribution margin.

Question 2

When a business is organized into separate departments,it is necessary to provide accounting information about each department.

Accepted Answer

A) True 
 B)False

Question 3

Department A had total sales of $84,000 and Department B had total sales of $36,000.Other Office Expenses,totaling $2,500,are allocated on the basis of total sales.The amount allocated to Department B is

Accepted Answer

A)  $750. 
B)  $1,750. 
C)  $1,250. 
D)  $1,071. 
A)  $750. 
B)  $1,750. 
C)  $1,250. 
D)  $1,071.

Question 4

Floor space would be a reasonable basis for the allocation of

Accepted Answer

A)  rent expense for a building. 
B)  sales revenue. 
C)  payroll taxes expense. 
D)  advertising expense. 
A)  rent expense for a building. 
B)  sales revenue. 
C)  payroll taxes expense. 
D)  advertising expense.

Question 5

A systematic and logical way to allocate the rent expense for a building to various sales departments would be on the basis of ___________________.

Accepted Answer

The answer of A systematic and logical way to allocate...

Question 6

The basic principle of ____________________ accounting is that management should be able to evaluate the performance of each segment of the business and pinpoint responsibility for its financial results.

Accepted Answer

The answer of The basic principle of ____________________ accounting is...

Question 7

Which of the following is NOT a cost center?

Accepted Answer

A)  accounting department 
B)  purchasing department 
C)  shoe department 
D)  research laboratory 
A)  accounting department 
B)  purchasing department 
C)  shoe department 
D)  research laboratory

Question 8

Managerial accounting is generally utilized to provide financial information about all of the following except

Accepted Answer

A)  business segments. 
B)  corporate headquarters. 
C)  products. 
D)  activities. 
A)  business segments. 
B)  corporate headquarters. 
C)  products. 
D)  activities.

Question 9

Using the information provided,determine and present in good form,the Operating Revenue section of the Income Statement for Cody's Conundrums.

Accepted Answer

The answer of   Using the information provided,determine and...

Question 10

A company may have several cost centers,but it can have only one profit center.

Accepted Answer

A) True 
 B)False

Question 11

Office salaries expense should be allocated on the basis of total sales in each department.

Accepted Answer

A) True 
 B)False

Question 12

Contribution margin figures are provided in traditional financial reports such as the Income Statement.

Accepted Answer

A) True 
 B)False

Question 13

The amount of floor space occupied by each department is a common basis for allocating rent expense or utilities expense.

Accepted Answer

A) True 
 B)False

Question 14

Indirect expenses of the human resource department within a company might include:

Accepted Answer

A)  wages of the human resource manager. 
B)  benefits of the department secretary. 
C)  rent expense. 
D)  supplies ordered and used by the department. 
A)  wages of the human resource manager. 
B)  benefits of the department secretary. 
C)  rent expense. 
D)  supplies ordered and used by the department.

Question 15

The Copying Department occupied 9,000 square feet of space and the Printing Department occupied 6,000 square feet of space in the same building.If janitorial costs for the building were $12,000,then the amount that the Copying Department would be allocated for janitorial services would be ________________.

Accepted Answer

The answer of The Copying Department occupied 9,000 square feet...

Question 16

McKay Corporation has Sales of $147,500,Cost of Goods Sold of $70,200,Direct Expenses of $35,300,and Indirect Expenses of $30,000.What is McKay Corporation's Contribution Margin?

Accepted Answer

A)  $77,300 
B)  $47,300 
C)  $42,000 
D)  $12,000 
A)  $77,300 
B)  $47,300 
C)  $42,000 
D)  $12,000

Question 17

The difficulty of fairly allocating direct expenses is one limitation of departmental income statements.

Accepted Answer

A) True 
 B)False

Question 18

A transfer price is

Accepted Answer

A)  the price for which a company sells its products to customers. 
B)  the price at which goods are moved from one department of a company to another department of the company. 
C)  the basis on which indirect expenses are allocated. 
D)  the price at which a company purchases its products from a supplier. 
A)  the price for which a company sells its products to customers. 
B)  the price at which goods are moved from one department of a company to another department of the company. 
C)  the basis on which indirect expenses are allocated. 
D)  the price at which a company purchases its products from a supplier.

Question 19

Which of the following enables management to evaluate the performance of each business segment?

Accepted Answer

A)  responsibility accounting 
B)  transfer pricing 
C)  profit center costing 
D)  cost center costing 
A)  responsibility accounting 
B)  transfer pricing 
C)  profit center costing 
D)  cost center costing

Question 20

Traditional financial statements may not contain adequate information for managing a business.

Accepted Answer

A) True 
 B)False

Exam 25: Departmentalized Profit and Cost Centers

A department probably would be considered for elimination if it had

When a business is organized into separate departments,it is necessary to provide accounting information about each department.

Department A had total sales of $84,000 and Department B had total sales of $36,000.Other Office Expenses,totaling $2,500,are allocated on the basis of total sales.The amount allocated to Department B is

Floor space would be a reasonable basis for the allocation of

A systematic and logical way to allocate the rent expense for a building to various sales departments would be on the basis of ___________________.

The basic principle of ____________________ accounting is that management should be able to evaluate the performance of each segment of the business and pinpoint responsibility for its financial results.

Which of the following is NOT a cost center?

Managerial accounting is generally utilized to provide financial information about all of the following except

Using the information provided,determine and present in good form,the Operating Revenue section of the Income Statement for Cody's Conundrums.

A company may have several cost centers,but it can have only one profit center.

Office salaries expense should be allocated on the basis of total sales in each department.

Contribution margin figures are provided in traditional financial reports such as the Income Statement.

The amount of floor space occupied by each department is a common basis for allocating rent expense or utilities expense.

Indirect expenses of the human resource department within a company might include:

McKay Corporation has Sales of $147,500,Cost of Goods Sold of $70,200,Direct Expenses of $35,300,and Indirect Expenses of $30,000.What is McKay Corporation's Contribution Margin?

The difficulty of fairly allocating direct expenses is one limitation of departmental income statements.

A transfer price is

Which of the following enables management to evaluate the performance of each business segment?

Traditional financial statements may not contain adequate information for managing a business.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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