COST ACCOUNTING Exam Questions And Answers. Verified and Updated.
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Cost accounting
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Cost Accounting
COST ACCOUNTING Exam Questions And
Answers. Verified and Updated.
Responsibility accounting is a system that measures the results of each responsibility center and
compares those results with some expected or budgeted outcome. - answerTRUE
A responsibility center is a part of a business whose w...
EXAM STUDY MATERIALS July 24, 2024 1:33:58 PM COST ACCOUNTING Exam Questions And Answers. Verified and Updated. Responsibility accounting is a system that measures the results of each responsibility center and compares those results with some expected or budgeted outcome. - answer✔✔TRUE A responsibility center is a part of a business whose workers are accountable for specified activities. - answer✔✔FALSE In an investment responsibility center, the manager is only responsible for costs. - answer✔✔FALSE In centralized organizations, lower -level managers are responsible only for implementing decisions. - answer✔✔TRUE Decentralization is the practice of delegating decision -making authority to the lower levels of management. - answer✔✔TRUE Local managers can make better decisions using distant inf ormation and outside managers can provide more timely responses to changing conditions. - answer✔✔FALSE Cognitive limitations mean it is difficult for central managers to be fully knowledgeable about all products and markets. - answer✔✔TRUE Decentralization stimulates competition among the divisions of a firm. - answer✔✔TRUE Return on investment (ROI) refers to earnings before interest and income taxes. - answer✔✔TRUE Margin is the ratio of operating income to sales. - answer✔✔TRUE One disadv antage of ROI in evaluating performance is that it encourages managers to slack off. - answer✔✔FALSE Economic value added (EVA) is after -tax operating income minus the total annual cost of capital. - answer✔✔True Goal congruence means that the goals of man agers are aligned with the goals of the company. - answer✔✔True
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