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Question: 1. If a company has two operating (selling) departments (shoes and hats) and two service departments (payroll and advertising), which of the following statements is correct?
(a) Wages incurred in the payroll department are direct expenses of the shoe department,
(b) Wages incurred in the payroll department are indirect expenses of the operating departments, or
(c) Advertising department expenses are allocated to the other three departments.
2. Explain the difference between a cost center and a profit center. Cite an example of each.
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Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows an $20,621 debit balance. Nolan's June 30 bank statement shows $1..
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Lobster industry 2008, price diagnosed. In Chapter 18, Exercise 35 (Lobster industry 2008), we constructed the fol- lowing regression model to predict the Price of lobster har- vested in Maine's lobster fishing industry.
Companies that use a process-cost accounting system would:
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