JetSky Airways has three divisions, the Western Division, the Eastern Division, and the Northern Division. The manager of the Western Division had wanted to purchase replacement airplanes for the division. However, he decided against it because, although revenues would increase and the new planes would be less expensive to operate, the initial cost of the planes was quite large. The Western
Division is most probably accounted for as a
A) cost center.
B) revenue center.
C) profit center.
D) investment center.
E) none of these.
D
You might also like to view...
Which of the following marketing concepts is an important reason for analyzing differences?
A) new product development B) market segmentation C) channel of distribution strategy D) promotion mix E) product differentiation
List three ways in which using a standard cost system helps managers.
What will be an ideal response?
Internal (company) and external (competitors, customers, governments, etc.) environments largely determine how managers must act to provide the organization with the right combination of people to help the organization reach its ______ goals.
A. environmental B. formalization C. strategic D. organizational
Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true?
a. The operating lease method treats leases as executory contracts. b. The operating lease method recognizes a leased asset on the lessee's balance sheet. c. The operating lease method does not recognize a lease liability on the lessee's balance sheet. d. The lessor recognizes rent revenue as the lessee uses the leased asset over time. e. The lessee recognizes rent expense as the lessee uses the leased asset over time.