Which of the following statements regarding profit centers is correct?
A. A manager of a profit center is responsible for assets, liabilities, and earnings.
B. A manager of a profit center is evaluated on his/her ability to control costs and generate revenues.
C. A manager of profit center is evaluated only on his/her ability to control costs.
D. A manager of a profit center has more responsibility than a manager of an investment center.
Answer: B
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Inventory process controls to protect inventory assets include:
a. warehouse bin location b. periodic physical inventory counts c. internal transfer procedures d. Just-in-time materials acquisition
Which of the following would be added to the balance per books on a bank reconciliation?
a. Deposits in transit b. Outstanding checks c. Service charges d. Notes collected by the bank
The unit cost of a job consists of the total costs of
A) materials used on the job. B) labor worked on the job. C) applied overhead. D) all of these answers. E) none of the answers listed.
A doctor’s office is considering the purchase of a new piece of equipment. The equipment costs $25,000. The procedure performed with the new equipment will be billed to patients at $200. The doctor’s office estimates that the cost of materials and training for the new equipment will be approximately $75 per procedure. For which of the demand value below does it make sense for the purchase?
a. 50 procedures b. 100 procedures c. 150 procedures d. 225 procedures