Which of the Following Enables Management to Evaluate the Performance

question 26

Multiple Choice

Which of the following enables management to evaluate the performance of each business segment?

• A)responsibility accounting
• B)transfer pricing
• C)profit center costing
• D)cost center costing

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Definitions:

Predetermined Overhead Rate

A rate used in costing to allocate estimated overhead costs to products or job orders based on a predetermined expense and activity level.

Job-Order Costing System

A costing method that assigns costs to specific jobs or batches, used when products or services are distinctly different.

Finishing Department

The section of a manufacturing plant where products are completed, undergoing final processes such as painting, polishing, or packaging.

Production Departments

Divisions within a manufacturing company responsible for different stages of the production process, from raw materials to finished products.