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Responsibility centers

2. Which one of the following responsibility centers is most likely to be the responsibility of a sales manager?
a. Cost Center
b. Profit Center
c. Revenue Center
d. Investment CenterPlease see the attached file.

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Designate the best answer for each of the following questions.

1. Which of the following best describes a nonfinancial performance measure contained in most Balanced Scorecards?
a. Customer response time

2. Which one of the following responsibility centers is most likely to be the responsibility of a sales manager?
a. Cost Center
b. Profit Center
c. Revenue Center
d. Investment Center

Here c is the answer
(As sales manager will be responsible only for the turnover)

3. Which one of the following describes how a master budget is used?
a. It deals only with those categories that will appear on future financial statements.
b. It compiles the operational budgets of all the separate operational and financial groups in the organization.
c. It is followed for exactly one year.
d. Its objectives are focused only on future costs and revenues

Here B is the answer
Master Budget is a comprehensive plan

4. Which one of the following is the most critical factor in just-in-time systems?
a. Parts delivered by suppliers must be received on time and within quality specifications.
b. Management must disclose major corporate decisions to workers.
c. The production facility must utilize all capacity available.
d. Actual sales must meet the forecast per the Sales Budget.

Here A is the answer

5. In a make-or-buy decision, which one of the following is not considered a relevant cost?
a. Supervisors salary expense
b. Direct labor
c. Avoidable fixed costs
d. Variable manufacturing costs

Here A is the answer

6. Which one of the following types of companies would most likely use a job cost system?
a. Manufacturer of potato chips
b. Manufacturer of staplers
c. Manufacturer of petroleum
d. General contractor of homes

Here D is the answer
There is more customization in case of homes

7. The starting point of the Master Budget is the preparation of the
a. Budgeted Balance Sheet
b. Capital Expenditure Budget
c. Sales Budget
d. Production Budget

Here C is the answer

8. The most useful measure for evaluating the performance of the manager of an investment center is:
a. Return on ...

Solution Summary

Response discusses responsibility centers

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