Acc Ch.22

Question 1

Budgetary control

Answer 1

Using budgets to control operations by comparing actual results to planned objectives outlined in financial terms

Question 2

Static budget

Answer 2

Data is budgeted upon one level of activity and actual results are compared to the static budgeted amounts

Question 3

Flexible budget

Answer 3

Data is budgeted based upon various levels of activity or in specific incremental amounts as determined by management relevant range

Question 4

Responsibility account

Answer 4

A way to control costs/expenses and evaluate department managers performance by assigning costs/expenses to managers responsible for controlling them

Question 5

Department classification

Answer 5

Operating- departments that perform the organizations main function

Service- departments that provide support to an organization operating departments

Question 6

Cost center

Answer 6

Incurs costs without directly generating revenues and are responsible for controlling costs with a range