Question 1

Match between columns
                        Premises: The process that allows management to evaluate the performance of each segment of th business and assign responsibility for its financial results
A business segment that incurs costs but does not produce revenue
Gross profit on sales minus direct expenses
Income statement that shows each department's contribution margin and net income fro operations after all expenses are allocated
Operating expenses that cannot be readily identified and are not closely related to activi within a department
The branch of accounting that provides financial information about business segments, activities, or products
Operating expenses that are identified directly with a department and are recorded by department
The price at which one segment's goods are transferred to another segment of the company
Operating expenses that cannot be directly assigned to a department but are closely related to departmental activities
A business segment that produces revenue

Accepted Answer

The Answer of Profit center and Transfer price and Departmental is...

Question 2

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

Accepted Answer

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

Question 3

Expenses of a business that do not change in total with fluctuations in sales are----------expenses.

Accepted Answer

The answer of Expenses of a business that do not...

Question 4

Department A had total sales of $84,000 and Department B had total sales of $36,000. Other Office Expenses, totaling $3,100, are allocated to the departments based on total sales.
- The amount of Other Office Expense allocated to Department B is:

Accepted Answer

A) $750. 
B) $930. 
C) $1,250. 
D) $2,170. 
A) $750. 
B) $930. 
C) $1,250. 
D) $2,170.

Question 5

An example of a direct expense in a department store is:

Accepted Answer

A) interest expense. 
B) sales salaries expense. 
C) rent expense for the building where the store is located. 
D) utilities expense. 
A) interest expense. 
B) sales salaries expense. 
C) rent expense for the building where the store is located. 
D) utilities expense.

Question 6

Which of the following is NOT a cost center?

Accepted Answer

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Departmental income statements provide management with the information necessary for decision-making. Which of the following is NOT a decision made possible by these statements?

Accepted Answer

A) Where improvements in the profitable departments are needed. 
B) Which departments to expand. 
C) Whether or not to eliminate a department. 
D) What base to use to allocate costs. 
A) Where improvements in the profitable departments are needed. 
B) Which departments to expand. 
C) Whether or not to eliminate a department. 
D) What base to use to allocate costs.

Question 9

A department's------------- is usually more heavily relied on than its net income or net loss when management is considering whether to eliminate the department.

Accepted Answer

The answer of A department's------------- is usually more heavily relied...

Question 10

Costs that cannot be directly assigned to a specific department, but are closely related to departmental activities are categorized as:

Accepted Answer

A) indirect expenses. 
B) direct expenses. 
C) semidirect expenses. 
D) general expenses. 
A) indirect expenses. 
B) direct expenses. 
C) semidirect expenses. 
D) general expenses.

Question 11

A business segment or department with a positive contribution margin contributes to increasing the net income of the business.

Accepted Answer

A) True 
 B)False

Question 12

Use the following information for the questions. Bamboozle Solutions has two departments, A and B. The total indirect expenses by category are given as are the Cost of the Assets, information on Square Feet, and the amount of Sales for each department.
 $\begin{array}{lr}
\text { Indirect Expense } &{\text { Total }} \
\text { Insurance Expense } & \$ 32,000 \
\text { Rent Expense } & 36,000 \
\text { Utilities Expense } & 15,000 \
\text { Office Salaries Expense } & 78,000 \
\text { Other Office Expense } & 4,000 \
\text { Uncollectible Accounts Expense } & 21,000
\end{array}$  
-Based on the information given, determine the basis for the allocation (value of the assets Equipment and Inventory; square feet of space; or sales)of each expense that will be allocated to the departments.

Accepted Answer

The answer of Use the following information for the questions....

Question 13

Complete the table of Uncollectible Accounts given below.

Accepted Answer

The answer of Complete the table of Uncollectible Accounts given...

Question 14

Management decisions involving the elimination of a department should be based primarily on the contribution margin of the department.

Accepted Answer

A) True 
 B)False

Question 15

Use the following information for the questions.
Cody's Conundrums
Income Statement Accounts (Partial) September 30, 2019
 
-Using the information provided, determine and present in good form, the Operating Expenses section of the Income Statement for Cody's Conundrums. Note: The last line item will be Total Indirect Expense.

Accepted Answer

Operating Expenses Direct Expe

Question 16

In a store with several sales departments, departmentalized accounts would be used for

Accepted Answer

A) sales only. 
B) sales and other income items only. 
C) sales, purchases, and merchandise inventory. 
D) all expense accounts. 
A) sales only. 
B) sales and other income items only. 
C) sales, purchases, and merchandise inventory. 
D) all expense accounts.

Question 17

Department XYZ had sales of $96,000, direct expenses of $58,000 and indirect expenses of $53,000. The indirect expenses allocated to this department would have been incurred whether or not the department existed. If this department had been eliminated, the company's reported net income would have been:

Accepted Answer

A) $58,000 higher. 
B) $38,000 lower. 
C) $53,000 lower. 
D) $15,000 higher. 
A) $58,000 higher. 
B) $38,000 lower. 
C) $53,000 lower. 
D) $15,000 higher.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Non-departmentalized expenses include items often found under the "Other Income and Other expense" section of the Income Statement.

Accepted Answer

A) True 
 B)False

Question 20

The departments of Cacophony Music Company are listed below. For each, determine whether it is a cost center or a profit center.
-Instrument Rental Department

Accepted Answer

A) Cost 
B) Profit 
A) Cost 
B) Profit

Exam 25: Departmentalized Profit and Cost Centers

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

Expenses of a business that do not change in total with fluctuations in sales are----------expenses.

Department A had total sales of $84,000 and Department B had total sales of $36,000. Other Office Expenses, totaling $3,100, are allocated to the departments based on total sales. - The amount of Other Office Expense allocated to Department B is:

An example of a direct expense in a department store is:

Which of the following is NOT a cost center?

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

Departmental income statements provide management with the information necessary for decision-making. Which of the following is NOT a decision made possible by these statements?

A department's------------- is usually more heavily relied on than its net income or net loss when management is considering whether to eliminate the department.

Costs that cannot be directly assigned to a specific department, but are closely related to departmental activities are categorized as:

A business segment or department with a positive contribution margin contributes to increasing the net income of the business.

Complete the table of Uncollectible Accounts given below.

Management decisions involving the elimination of a department should be based primarily on the contribution margin of the department.

In a store with several sales departments, departmentalized accounts would be used for

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

Non-departmentalized expenses include items often found under the "Other Income and Other expense" section of the Income Statement.

The departments of Cacophony Music Company are listed below. For each, determine whether it is a cost center or a profit center. -Instrument Rental Department

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 Teh 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 Analysis

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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