Match Each Term with the Correct Statement from Below

question 9

Multiple Choice

Match each term with the correct statement from below.
-A(n) ___________ is a responsibility centre in which a manager is responsible only for costs.

• A)Centralization
• B)Revenue centre
• C)Profit centre
• D)Cost centre
• E)Investment centre
• F)Decentralization

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Definitions:

Applied Overhead

The estimated overhead cost allocated to particular cost objects, based on a predetermined rate.

Actual Overhead

The real expenses incurred for overhead in a given period, as opposed to budgeted or estimated costs.

Production Jobs

Positions in manufacturing that involve direct involvement in the creation of products, such as assembly line work or machine operation.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, useful for customized or unique products.