Indicate Whether Each of the Following Statements About Responsibility Centers

question 8

Short Answer

Indicate whether each of the following statements about responsibility centers is true or false.
_____ a) A responsibility center controls identifiable revenue or expense items.
_____ b) To be designated as a responsibility center, a department must be a large segment of an organization.
_____ c) A cost center generates revenues and expenses.
_____ d) Cost centers are commonly found at all levels of the organization chart.
_____ e) The manager of a profit center is evaluated based primarily on his/her ability to control costs.

Apply the concepts of budgeting and variance analysis to different types of costs (variable, fixed) and activities (jobs, meals, flights, etc.).

Analyze the impact of changes in activity levels on budgeted and actual costs.

Determine the budgeted and actual cost given a cost formula and activity data.

Identify financial performance indicators from variances in budget reports.

---

Definitions:

Self-Monitoring

The awareness and regulation of one's behavior according to social situations and expectations.

Social Situations

Scenarios involving interactions between individuals or groups in a social context.

Environmental Situations

Circumstances or events that occur in the surrounding natural world, affecting individuals, communities, or ecosystems.

Self-Analysis

The process of examining one's own thoughts, feelings, and behaviors to gain insight or improve self-understanding.