Costing - Study Mode

[#1021] Which of following is an example of revenue center?
Correct Answer

(A) sales department

Explanation

Solution: Sales department is an example of revenue center. A revenue center is a distinct operating unit of a business that is responsible for generating sales.

[#1022] Variance, if used to alert managers before time of problem is called
Correct Answer

(D) early warning

Explanation

Solution: Variance, if used to alert managers before time of problem is called early warning.

[#1023] The formula for net cash inflow of a project is
Correct Answer

(A) Sales - Operating expenses - Interest - Tax

[#1024] Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to the . . . . . . . .
Correct Answer

(A) production departments

[#1025] Profit for the objective of calculating a ratio may be taken as
Correct Answer

(D) All of the above