Question

Service departments, such as accounting, finance, general administration, legal, and personnel, are usually considered to be...

Service departments, such as accounting, finance, general administration, legal, and personnel, are usually considered to be cost centres. In addition, manufacturing facilities are often considered to be cost centres.

Select one:

True

False

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is true

A cost center is a center for which costs are accounted. They incur costs and their performance is monitored against cost control at end of the year. A cost center can be a division, department or function. They do not generate revenues and only incur cost in production of output or maintenance of other departments through their service. So answer is true. Manufacturing facilities are cost center since they account for cost of manufacture. Other support function such as accounting, finance, legal, personnel are service departments hence they are also cost centers.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees – 24 44 32 Transactions 32,000 – 24,000 96,000 Department direct costs $ 354,000 $ 148,000 $ 940,000 $ 3,710,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees – 24 44 32 Transactions 32,000 – 24,000 96,000 Department direct costs $ 354,000 $ 148,000 $ 940,000 $ 3,710,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows:    Administration Accounting Domestic International Employees – 28 52 20 Transactions 40,000 – 21,000 84,000 Department direct costs $ 359,000 $ 142,000 $ 950,000 $ 3,750,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows:    Administration Accounting Domestic International Employees – 30 55 15 Transactions 39,000 – 19,000 76,000 Department direct costs $ 354,000 $ 147,000 $ 960,000 $ 3,580,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees — 25 15 60 Transactions 50,000 — 10,000 40,000 Department direct costs $ 57,000 $ 29,000 $ 158,250 $ 602,000 BluStar estimates that the cost structure in its operations is as follows....
Allocation Base for Service Departments. Valencia Company has 15 production departments and produces hundreds of products....
Allocation Base for Service Departments. Valencia Company has 15 production departments and produces hundreds of products. Service department costs are allocated to production departments using the direct method. Five service departments provide the following services to the production departments. 1. The Computer Technology department provides computer support. 2. The Personnel department posts job openings, hires employees, and coordinates employee benefits. 3. The Accounting department processes accounting data, provides financial reports, and performs general accounting duties. 4. The Maintenance department maintains...
Each of the clinic’s three departments (administration, general peds and neonatology) has a cost code in...
Each of the clinic’s three departments (administration, general peds and neonatology) has a cost code in the practice’s accounting software and all the practice’s expenses are assigned to one of these three areas. The practice manager is interested in better understanding the profitability of each division, but realizes that to do so she must allocate administrative cost to the two divisions. The practice administrator gathers the following information about the two clinical departments for the past month Monthly revenue Claims...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are...
30. Hanung Corp has two service​ departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $184,000 and $276,000​, respectively. Data on budgeted maintenance−hours and number of employees are as​ follows:                                                                                                                     Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $310,000 $150,000 $184,000 $276,000 Budgeted maintenance−hours NA 880...
Select all of the Following that would most likely be considered a Sunk Cost. Group of...
Select all of the Following that would most likely be considered a Sunk Cost. Group of answer choices Cost of the Salary for the Newly Hired VP of Production Cost of Truck Purchased for Deliveries to Customers Cost of Land Purchased to Build a Factory Cost of Monthly Rental of a Forklift for the Factory Cost of Office Equipment in the Accounting Department Cost of the Monthly Fixed Cost for Internet Service Which One is True ? Group of answer...
The following statement is true is all respects: Organizations that make up the supply chain are...
The following statement is true is all respects: Organizations that make up the supply chain are “linked” together through physical, financial and information flows forming partnerships that add value to the customer experience. True False Flag this Question Question 3 1 pts Supply chain management is undergoing a level of transformation, not unlike other disciplines. Which of the selections below best represents this transformation. Business Logistics Physical Distribution Integrated Business Planning Its not transforming Flag this Question Question 4 1...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT