Chapter 8 Review1. Which of the following would be most effective in a small owner/manager-operated business?
2. Which is the best example of a decentralized operation?
3. The following are advantages of decentralization except:
4. Which of the following is a disadvantage of decentralization?
5. In a profit center, the department manager has responsibility for and the authority to make decisions that affect:
6. Which of the following expenses incurred by the sporting goods department of a department store is a direct expense?
7. Which of the following expenses incurred by a department store is an indirect expense?
8. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed:
9. Income from operations of the Commercial Aviation Division is $2,225,000. If income from operations before service department charges is $3,250,000: total service department charges are $1,025,00010. To calculate income from operations, total service department charges are:
11. The following data are taken from the management accounting reports of Dulcimer Co.:Div. ADiv. BDiv. CIncome from operations$1,800,000$1,350,000$1,350,000Total servicedepartment charges1,700,0001,050,0001,100,000If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that:
12. Some organizations use internal service departments to provide like services to several divisions or departments within an organization. Which of the following would probably not lend itself as a service department?