WEEK 6: RESPONSIBILITY ACCOUNTING What is a cost center? A revenue center? A profit center? An...

WEEK 6: RESPONSIBILITY ACCOUNTING

What is a cost center? A revenue center? A profit center? An investment center? Please explain in the context of your own business or industry, if possible.

Expert Solution

1. Cost division : - a cost division is a department in the business in which the cost of the business can be allocated and it may not be directly related to the company or business. The cost center only contribute indirectly to the profits of the company.

2. Revenue division : - a revenue division is like a operating unit of a business which contributes to the sales of the company or business. For example, department center each department such as cosmetic, jewellery contributes to the sales of the business thus leading to revenue.

3. Profit division : - it is a division or a branch of the company which contributes for the calculation of the profit. A profit division is responsible for its own profit generation as the manager has the decision making power.

4. Investment division : - it is an unit which is used to measure against its use of capital as opposite of cost or profit division which is measured against the raw materials or profit generating decisions.

ekkarill92 answered 3 years ago

Class: ACCT-301 WEEK 6: RESPONSIBILITY ACCOUNTING What is an investment center? What are the managers of...

Class: ACCT-301 WEEK 6: RESPONSIBILITY ACCOUNTING What is an investment center? What are the managers of an investment center responsible for?

9. What is a cost center? _________________________________ _ What is a Profit center?

9. What is a cost center? _____________________________________________________________________________________ _____________________________________________________________________________________ What is a Profit center? _____________________________________________________________________________________ _____________________________________________________________________________________ What is an investment center? _____________________________________________________________________________________ _____________________________________________________________________________________ What is management by exception: _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ What is a Balance Scorecard? _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

What is Amazon's cost center, profit center, and investment center? Explain.

1. Under what conditions can management delegate a financial responsibility center of Profit Responsibility ? 2....

1. Under what conditions can management delegate a financial responsibility center of Profit Responsibility ? 2. Explain the difficulties that top management experiences in formulating strategies if the business environment changes rapidly

1.How can/should responsibility center managers use accounting information developed from the variance analysis,standard costs,cost volume profit...

1.How can/should responsibility center managers use accounting information developed from the variance analysis,standard costs,cost volume profit analysis,and efficiency be utilized to make better decisions

What is the difference between a cost center and a profit center? Give a complete answer...

What is the difference between a cost center and a profit center? Give a complete answer that demonstrates what critical element distinguishes the profit center from the cost center.

7. Which of the following is not a type of responsibility center? A concentrated cost center...

7. Which of the following is not a type of responsibility center? A. concentrated cost center B. Investment center C. profit center D. cost center 8. A responsibility center in which managers are held accountable for both revenues and expenses is called a _______ A. discretionary cost center B. revenue center C. cost center D. profit center 9. The amount of income a given division is expected to earn in excess of a firm's minimum return goal is called: A. return on investment B. residual...

What is the relationship of accountability, responsibility, and authority with respect to a responsibility center

Distinguish among a cost center, a profit center, and an investment center. Provide an example of...

Distinguish among a cost center, a profit center, and an investment center. Provide an example of each for a multi-hospital corporation. What are some of the uses that management may make of accounting information about individual responsibility centers of the business?

What metrics would be appropriate for each scenario, cost profit and profit center? Describe when an...

What metrics would be appropriate for each scenario, cost profit and profit center? Describe when an activity should be considered a cost center and when it should be considered a profit center. B) What metrics would be appropriate for each scenario (cost center; profit center)? Need help with B.

Question