Responsibility Centers Usually Have a Single Goal That the Management

question 106

True/False

Responsibility centers usually have a single goal that the management control system monitors.

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Definitions:

Activity Variance

The difference between the actual cost incurred for an activity and the standard cost set for that same activity.

Total Expenses

The sum of all costs and expenditures that a business incurs during a given period, including operating expenses, cost of goods sold, and other charges.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing better comparisons and analysis of performance.