Responsibility Accounting and Performance Measures Paper 3

1

Periodic internal reports used for performance evaluation purposes and based on a responsibility accounting system should not include






2

Which one of the following best identifies a profit center?






3

Characteristics of a responsibility accounting system include all of the following except that






4

Responsibility costs motivate managers of responsibility centers to act in the organizationís interest. The attribute that would be least persuasive in deciding to allocate costs to responsibility centers is that they






5

Making segment disclosures is an advantage to a company because it






6

Sara Bellows, manager of the telecommunication sales team, has the following department budget.
Billings -- long distance $350,000
Billings -- phone card 75,000
Billings -- toll free 265,000
Her responsibility center is best described as a






7

An organization employs a system of internal reporting that furnishes departmental managers with revenue and cost information on only those items that are subject to their control. Items not subject to the managerís control are not included in the performance reports. This method of accounting is known as






8

Jonathan Roger is the marketing manager for a local recreational sports complex. Rogerís role in the marketing department is to advertise events, meet potential clients, and plan future events. Roger is responsible for the revenues and costs of each event and reports to the sports complex manager. Rogerís marketing department is an example of which type of responsibility center?






9

A manager who is accountable for both income statement and balance sheet items is responsible for a(n)






10

A cosmetics company is expanding its marketing presence by placing stores within a national department store chain. The cosmetics company hires its own store managers who are responsible for generating sales. The company pays rent per square foot to the department store. For the purpose of assessing the managersí performance, each cosmetics store would most appropriately be considered a(n)






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