e1. Noncontrollable Costs

INCORRECT: No answer given

ANSWER: Costs incurred indirectlyand allocated to responsibilitycenter that are not controllable at

that level.

2. Controllable Margin

INCORRECT: No answer given

ANSWER: Contribution margin less

5 Written questions

1. The use of budgets to control operations.

INCORRECT: You gave no answer

ANSWER: Budgetary Control

2. A measure of management's effectiveness in utilizing assets at its disposal in an investment center.

INCORRECT: You gave no answer

ANSWER: Return on Investment (ROI)

3. A Projection of budget data for various levels of activity.

INCORRECT: You gave no answer

ANSWER: Flexible Budget

4. Costs that are incurred for the benefit of more than one profit center.

INCORRECT: You gave no answer

ANSWER: Indirect Fixed Costs

5. A projection of budget data at one level of activity.

INCORRECT: You gave no answer

ANSWER: Static Budget

5 Matching questions

a

Costs that relate specifically to a responsibility center andare incurred for the sole benefit of the center.

b Contribution margin less controllable fixed costs.

c

The review of budget reports by top management focusedentirely or primarily on differences between actual resultsand planned objectives.

d

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NAME

bd

c

a

controllable fixed costs.

3. Responsibility Accounting

INCORRECT: No answer given

ANSWER: A part of managementaccounting that involvesaccumulating and reporting

revenues and costs on the basis of themanager who has the authority to makethe day-to-day decisions about the items.

4. Management By Exception

INCORRECT: No answer given

ANSWER: The review of budgetreports by top managementfocused entirely or primarily on

differences between actual results andplanned objectives.

5. Direct Fixed Costs

INCORRECT: No answer given

ANSWER: Costs that relatespecifically to a responsibilitycenter and are incurred for the sole

benefit of the center.

4 Multiple choice questions

1. A responsibility center that incurs costs and also generates revenues.(No Answer)

a. Cost Centerb. CORRECT: Profit Centerc. Segmentd. Investment Center

A part of management accounting that involvesaccumulating and reporting revenues and costs on thebasis of the manager who has the authority to make theday-to-day decisions about the items.

e

Costs incurred indirectly and allocated to responsibilitycenter that are not controllable at that level.

2. A responsibility center that incurs costs but does not directly generate revenues.(No Answer)

a. Profit Centerb. Segmentc. Investment Centerd. CORRECT: Cost Center

3. The income that remains after subtracting from the controllable margin the minimum rate of return on acompany's average operating assets.(No Answer)

a. Flexible Budgetb. Static Budgetc. CORRECT: Residual Incomed. Segment

4. A cost over which a manager has control.(No Answer)

a. Controllable Marginb. CORRECT: Controllable Costc. Noncontrollable Costsd. Indirect Fixed Costs

4 True/False questions

1. Responsibility Reporting System A part of management accounting that involves accumulating andreporting revenues and costs on the basis of the manager who has the authority to make the day-to-daydecisions about the items.

This is false. You gave no answer.

It should be Responsibility Reporting System The preparation of reports for each level of responsibilityin the company's organization chart..

2. Investment Center A responsibility center that incurs costs but does not directly generate revenues.

This is false. You gave no answer.

It should be Investment Center A responsibility center that incurs costs, generates revenues, and hascontrol over decisions regarding the assets available for use..

3. Segment A responsibility center that incurs costs but does not directly generate revenues.

This is false. You gave no answer.

It should be Segment An area of responsibility in decentralized operations..

4. Decentralization A responsibility center that incurs costs but does not directly generate revenues.

This is false. You gave no answer.

It should be Decentralization Control of operations is delegated to many managers throughout theorganization..