Matching
Match the following definitions with correct terms on the line provided
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
Responses:
Profit center
Transfer price
Departmental income statement
Responsibility accounting
Semidirect expenses
Indirect expenses
Contribution margin
Managerial accounting
Cost center
Direct expenses
Correct Answer:
Premises:
Responses:
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
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
Responses:
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