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Question 0

Activity cost driver

Activity go up and down

Answer 0

A factor that causes the cost of an activity to go up or down

Question 1

Activity base costing trace activity assign cost

Answer 1

Method that focuses on activities performed ; traces objects cost to activities and then assigns them to cost

Question 2

Activity cost pool

Temporary account identify set of activities

Answer 2

A temporary account used to a cumulate the costs a company incurs to support an identified set of activities / includes variable and fixed cost

Question 3

Departmental accounting system evaluate profitability and cost

Answer 3

Accounting system that provides information useful in evaluating the profitability or cost effectiveness of a department

Question 4

Direct expense

Answer 4

Readily traced to department because incurred for sole benefit of department

Question 5

Indirect expense

Answer 5

Incurred for joint benefit of more than one department can’t be readily traced to one department

Question 6

Departmental contribution to overhead revenues exceed direct cost

Answer 6

Amount by which a department’s revenues exceed its direct expense

Question 7

Investment center residual income net income above target return

Answer 7

The net income an investment earns above a target return on average invested assets

Question 8

Balanced scorecard

Answer 8

System of performance collects information on several key performance indicators
Customer, internal process innovation and learning, financial

Question 9

Controllable cost manager effect

amount incurred

Answer 9

Manager has power to determine or effect amount incurred

Question 10

Responsibility accounting budget cost and expense manager Control

Answer 10

Identifies cost and expense under managers control

Question 11

Responsibility manager accounting cost performance reports

Answer 11

Accumulates and report cost for which a manager is responsible and their budgeted amounts

Question 12

Investment center revenues/cost/assets

Answer 12

Manager is responsible for revenues / cost/ assets investments

Question 13

Profit margin net income/ net sales

Answer 13

Ratio of a company’s net income to its net sales/ the % of income in each dollar of revenue

Question 14

Investment turnover sales from assets

Answer 14

The efficiency with which a company generates sales from its available assets. Sales/average invested assets

Question 15

Transfer pricing between division

Answer 15

Price used to record transfers between divisions in the same company

Question 16

Joint cost produce two or more products p

Answer 16

Incurred to produce or purchase two or more products at the same time