Solved

Match the Following Definitions with the Terms

Question 120

Matching

Match the following definitions with the terms

Premises:

Responses:

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

Contribution margin

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

Cost center

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

Departmental income statement

A business segment that produces revenue

Direct expenses

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

Indirect expenses

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

Managerial accounting

A business segment that incurs costs but does not produce revenue

Profit center

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

Responsibility accounting

Gross profit on sales minus direct expenses

Semidirect expenses

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

Transfer price

Premises:

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

A business segment that produces revenue

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

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

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

Gross profit on sales minus direct expenses

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

Responses:

Contribution margin

Cost center

Departmental income statement

Direct expenses

Indirect expenses

Managerial accounting

Profit center

Responsibility accounting

Semidirect expenses

Transfer price

Correct Answer:

Premises:

Responses:

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

A business segment that produces revenue

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

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

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

Gross profit on sales minus direct expenses

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