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Match the Following Definitions with Correct Terms on the Line

Question 106

Matching

Match the following definitions with correct terms on the line provided

Premises:

Responses:

The process that allows management to evaluate the performance of each segment of th business and assign responsibility for its financial results

Profit center

A business segment that incurs costs but does not produce revenue

Transfer price

Gross profit on sales minus direct expenses

Departmental income statement

Income statement that shows each department's contribution margin and net income fro operations after all expenses are allocated

Responsibility accounting

Operating expenses that cannot be readily identified and are not closely related to activi within a department

Semidirect expenses

The branch of accounting that provides financial information about business segments, activities, or products

Indirect expenses

Operating expenses that are identified directly with a department and are recorded by department

Contribution margin

The price at which one segment's goods are transferred to another segment of the company

Managerial accounting

Operating expenses that cannot be directly assigned to a department but are closely related to departmental activities

Cost center

A business segment that produces revenue

Direct expenses

Premises:

The process that allows management to evaluate the performance of each segment of th business and assign responsibility for its financial results

A business segment that incurs costs but does not produce revenue

Gross profit on sales minus direct expenses

Income statement that shows each department's contribution margin and net income fro operations after all expenses are allocated

Operating expenses that cannot be readily identified and are not closely related to activi within a department

The branch of accounting that provides financial information about business segments, activities, or products

Operating expenses that are identified directly with a department and are recorded by department

The price at which one segment's goods are transferred to another segment of the company

Operating expenses that cannot be directly assigned to a department but are closely related to departmental activities

A business segment that produces revenue

Responses:

Profit center

Transfer price

Departmental income statement

Responsibility accounting

Semidirect expenses

Indirect expenses

Contribution margin

Managerial accounting

Cost center

Direct expenses

Correct Answer:

Premises:

Responses:

The process that allows management to evaluate the performance of each segment of th business and assign responsibility for its financial results

A business segment that incurs costs but does not produce revenue

Gross profit on sales minus direct expenses

Income statement that shows each department's contribution margin and net income fro operations after all expenses are allocated

Operating expenses that cannot be readily identified and are not closely related to activi within a department

The branch of accounting that provides financial information about business segments, activities, or products

Operating expenses that are identified directly with a department and are recorded by department

The price at which one segment's goods are transferred to another segment of the company

Operating expenses that cannot be directly assigned to a department but are closely related to departmental activities

A business segment that produces revenue