Q1TI - Horngren'S Financial And Managerial Accounting

Question

Fill in the blanks with the phrase that best completes the sentence. Some phrases may be used more than once and some not at all.

Phrases:

• cost center
• revenue center
• investment center
• lower
• profit center
• higher
• responsibility center

1. The maintenance department at the local zoo is a(n)___________              

2. The gift shop at the local zoo is a(n)____________                     

3. The menswear department of a department store, which is responsible for buying and selling merchandise, is a(n)_______________                

4. The production line at a manufacturing plant is a(n)           

5. A( n)________________is any segment of the business whose manager is accountable for specific activities.

6. A division of a beverage manufacturing company responsible for a particular brand of soft drink is a(n)_______________              

7. The sales manager in charge of a shoe company’s northwest sales territory oversees a(n)

8. Managers of cost and revenue centers are at_____________ levels of the organization than are managers of profit and investment centers.______

Step-by-Step Solution

Answer

Answer

1) Cost center

2) Profit center

3) Profit center

4) Cost center

5) Responsibility center

6) Investment center

7) Revenue center

8) Lower

Step 1: Meaning of Cost center

Cost centers are divisions that give capacities inside a firm that are alluded to as benefit units or commerce centers but do not produce income. They are regulatory, bolster, and service-related services since they are fundamental to ensuring that operations work as quickly as conceivable, it is troublesome to nullify specific firm capacities to save cash.

Step 2: Filling in the blanks

1. The maintenance department at the local zoo is a (n) cost center.            

2. The gift shop at the local zoo is a (n) profit center.                 

3. The menswear department of a department store, which is responsible for buying and selling merchandise, is a (n) profit center              

4. The production line at a manufacturing plant is a (n) cost center        

5. A (n) responsibility center is any segment of the business whose manager is accountable for specific activities.

6. A division of a beverage manufacturing company responsible for a particular

brand of soft drink is a (n) investment enter.           

7. The sales manager in charge of a shoe company’s northwest sales territory oversees a (n) revenue center.              

8. Managers of cost and revenue centers are at lower levels of the organization than are managers of profit and investment centers.