Match the Items Below by Entering the Appropriate Code Letter

question 116

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
A. Budgetary control
B. Static budget
C. Flexible budget
D. Responsibility accounting
E. Controllable costs
F. Management by exception
G. Responsibility reporting system
H. Return on Investment
I. Profit center
J. Investment center
K. Indirect fixed costs
L. Direct fixed costs
____ 1. The review of budget reports by top management directed entirely or primarily to differences between actual results and planned objectives.
____ 2. A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the individual manager who has the authority to make the day-to-day decisions about the items.
____ 3. The preparation of reports for each level of responsibility shown in the company's organization chart.
____ 4. A projection of budget data at one level of activity.
____ 5. Costs that a manager has the authority to incur within a given period of time.
____ 6. The use of budgets to control operations.
____ 7. A projection of budget data for various levels of activity.
____ 8. A responsibility center that incurs costs, generates revenues, and has control over the investment funds available for use.
____ 9. Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center.
____ 10. A responsibility center that incurs costs and also generates revenues.
____ 11. Costs which are incurred for the benefit of more than one profit center.
____ 12. A measure of the profitability of an investment center computed by dividing controllable margin (in dollars) by average operating assets.

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Definitions:

Trademarked

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Copyrighted

Describes material, such as text, music, or artwork, that is legally protected from unauthorized use without permission from the owner.

Business Plan

A document describing a business that is used to test the feasibility of a business idea, to raise capital, and to serve as a road map for future operations.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting fair competition and preventing unfair business practices such as price discrimination, anti-competitive mergers, and exclusive dealing contracts.