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AC202 Quiz 6 Help

AC202 Quiz 6 Help - Department in which all of the costs...

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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.  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. 4. In a firm that manufactures clothing, the department that is responsible for actually assembling the  garments could best be described as a: A. Service department.  B. Operating or production  department.  C. Cost center. D. Department in which all of the costs incurred are direct expenses. E. 
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Unformatted text preview: Department in which all of the costs incurred are indirect expenses. Problem Texas Toys, a retail store, has four sales departments supported by three service departments. Cost and operational data for each department follow: Department Sales Cost of Goods Sold Square Footage Purchase orders Issued: 1 $92,160 $36,864 1,728 1,260 2 69,120 32,832 3,024 1,680 3 80,640 32,256 1,296 2,310 4 46,080 27,648 2,592 1,750 Service Dept. Allocation Basis Cost Advertising sales $10,000 Maintenance square footage 6,900 Purchasing no. of purchase orders issued 12,000 Determine the service department expenses to be allocated to Sales Department 1 for: Advertising _____$3200 ____ Maintenance____ $1380 _______Purchasing ___$2160___...
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