AC202Quiz6 Bryans

AC202Quiz6 Bryans - C Cost center D Department in which all of the costs incurred are direct expenses E Department in which all of the costs

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
AC 202 Principles of Accounting 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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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.
Background image of page 2
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.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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 3,200 Maintenance 1,380 Purchasing 2,160 WORK Total sales= 288,000 Total Sq. Ft.= 8,620 Total purchase orders issued= 7,000 % of allocation base for advertising = 92,160/288,000= .32 % of allocation base for Maintenance = 1,728/8,620= .20 % of allocation base for Purchasing = 1,260/7,000= .18 10,000 X .32 = 3,200 6,900 X .20 = 1,380 12,000 X .18 = 2,160...
View Full Document

This note was uploaded on 03/02/2012 for the course ACCT 202 taught by Professor Pizzillo during the Spring '08 term at Park.

Page1 / 4

AC202Quiz6 Bryans - C Cost center D Department in which all of the costs incurred are direct expenses E Department in which all of the costs

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online