Costs Are Accumulated by a Responsibility Centre for Control Purposes

question 71

Multiple Choice

Costs are accumulated by a responsibility centre for control purposes when using:
Job order costing
Process costing

• A) Yes
• Yes
• B) Yes
• No
• C) No
• Yes
• D) Costs are irrelevant for control purposes

---

Definitions:

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute with increased output.

Average Total Costs

The cost per unit produced calculated by dividing the total cost of production by the quantity of output.

Average Fixed Cost

The fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.

Line Segment AB

The part of a line that is bounded by two distinct end points, and contains every point on the line between its endpoints.