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Unformatted text preview: David Trinh 16:26:10 Accounting-301 Monday 9-1pm Chapter 8-9 vocabs Budgetary Control The use of budget to control operations Controllable cost A cost over which a manager has control Controllable margin Contribution margin less controllable fixed costs Cost center A responsibility center that incurs costs but does not directly generate revenues Decentralization Control of operations is delegated to many managers throughout the organization Direct fixed costs Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center Flexible budget A projection of budget data for various levels of activity Indirect fixed costs Costs that are incurred for the benefit of more than one profit center Investment center A responsibility center that incurs costs, generates revenues and has control over the investment funds available for use Management by exception The review of budget reports by top management focused entirely or...
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This note was uploaded on 10/07/2009 for the course ACCT 301 taught by Professor Cindyphan during the Spring '09 term at DeVry Sherman Oaks.
- Spring '09