Reference no: EM131027631
In each blank next to the following terms, place the identifying letter of its best description.
1. _______ Cost center
2. _______ Investment center
3. _______ Departmental accounting system
4. _______ Operating department
5. _______ Profit center
6. _______ Responsibility accounting system
7. _______ Service department
A. Engages directly in manufacturing or in making sales directly to customers.
B. Does not directly manufacture products but contributes to profitability of the entire company.
C. Incurs costs and also generates revenues.
D. Provides information used to evaluate the performance of a department.
E. Incurs costs without directly yielding revenues.
F. Provides information used to evaluate the performance of a department manager.
G. Holds manager responsible for revenues, costs, and investments.
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