AC202 Quiz6

AC202 Quiz6 - Service department. B. Operating or...

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AC 202 Principles of Accounting Name_______Jered Havens _____________ Park University Quiz 6A-Chapter 21 Multiple Choice Questions ( 10 points each ) Select the ONE BEST Answer 1. A department that incurs costs without directly generating revenues is a: A. Service center. B. Production center. C. Profit center. D. Cost center. E. Performance center. 1
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2. Costs that the manager has the power to determine or at least strongly influence are called: A. Uncontrollable costs. B. Controllable costs. C. Joint costs. D. Direct costs. E. Indirect costs. 3. The most useful evaluation of a manager's cost performance is based on: A. Controllable costs. B. Contribution percentages. C. Departmental contributions to overhead. D. Fixed expenses. E. Direct costs.
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4. In a firm that manufactures clothing, the department that is responsible for actually assembling the garments could best be described as a: A.
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Unformatted text preview: Service department. B. Operating or production department. C. Cost center. D. Department in which all of the costs incurred are direct expenses. E. Department in which all of the costs incurred are indirect expenses. Problem ( 60 points ) 3 Texas Toys, a retail store, has four sales departments supported by three service departments. Cost and operational data for each department follow: Determine the service department expenses to be allocated to Sales Department 1 for: Advertising ___________________ Maintenance __________________ Purchasing ____________________ Answer: Advertising: $3,200 = $10,000 X $92,160 / $288,000 (92,160+69,120+80,640+46,080=288,000) Maintenance: $1,380 = 6,900 X 1,728 / 8,640 (1,728+3,024+1,296+2,592=8640) Purchasing: $2,160 = 12,000 X 1,260 / 7,000 (1,260+1,680+2,310+1,750=7,000)...
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AC202 Quiz6 - Service department. B. Operating or...

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