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46) For production and support departments, a method of
implementing cost centers that is output-oriented is the:
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47) Expenditures made in revenue centers usually include:
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48) The balanced scorecard measures the strategic
business unit (SBU)'s performance in all of the following
areas except :
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49) Bradbo owned two adjoining restaurants, the Pork
Palace and the Chicken Hut. Each restaurant was treated as a
profit center for performance evaluation purposes. Although
the restaurants had separate kitchens, they shared a central
baking facility. The principal costs of the baking area included
materials, supplies, labor, and depreciation and maintenance
on the equipment.
Bradbo allocated the monthly costs of the baking facility to
the two restaurants based on the number of tables served in
each restaurant during the month using dual allocation and
equal sharing of fixed costs. In April, the costs were $43,000,
of which $22,500 were
fixed. The Pork Palace
served 4,400 tables, while
the Chicken Hut served
3,600 tables.
The amount of joint cost
that should have been
allocated to the Pork
Palace in April is
calculated to be:
A) $11,500.
B) $20,500.
C) $22,525.
D) $25,800.
E) $31,600.
50) Bradbo owned two adjoining restaurants, the Pork
Palace and the Chicken Hut. Each restaurant was treated as a
profit center for performance evaluation purposes. Although
the restaurants had separate kitchens, they shared a central
baking facility. The principal costs of the baking area included
materials, supplies, labor, and depreciation and maintenance
on the equipment.
Bradbo allocated the monthly costs of the baking facility to
the two restaurants based on the number of tables served in
each restaurant during the month using dual allocation and
equal sharing of fixed costs. In April, the costs were $30,000,
of which $16,000 were fixed. The Pork Palace served 4,400
tables, while the Chicken Hut served 3,600 tables.
The amount of joint cost that should have been allocated to
the Pork Palace in April is calculated to be: