Question : 43. In a responsibility accounting system, the recording of revenue and : 1229607

43. In a responsibility accounting system, the recording of revenue and costs begins with the: 
A. Most profitable segments of the business.
B. Least profitable segments of the business.
C. Broadest areas of managerial responsibility.
D. Smallest areas of managerial responsibility.

44. Sloan Sporting Goods has stores in four geographic regions. Each region has at least 20 stores. In the company’s responsibility accounting system, sales are recorded separately for each sales department within each store. The total sales for a particular region are determined by: 
A. Combining the total sales of all stores in that region.
B. Using a separate revenue account to record the sales transaction for each region.
C. Taking a percentage of the company’s total sales that is equal to the percentage of the company’s stores located in that region.
D. Adding together the sales tickets for all sales transactions in the region.

45. In preparing a responsibility income statement that shows contribution margin and responsibility margin, two concepts are involved in allocating costs to the various centers. These concepts are: 
A. Whether the costs are variable or fixed and whether they are material in dollar amount.
B. Whether the costs are traceable to the responsibility center and whether the responsibility center is organized as a profit center or an investment center.
C. Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
D. Whether the costs are traceable to the responsibility center and whether they are material in dollar amount.

46. The responsibility margin is calculated by: 
A. Subtracting fixed costs traceable to a center from its contribution margin.
B. Subtracting common fixed costs from the contribution margin.
C. Subtracting variable costs from sales.
D. Subtracting common fixed costs from variable costs.

47. Responsibility margin is equal to: 
A. Revenue, less contribution margin and traceable fixed costs.
B. Revenue, less variable costs.
C. Revenue, less variable costs and traceable fixed costs.
D. Revenue, less variable fixed costs, traceable fixed costs, and common costs.

48. Depreciation on the factory would be an example of a: 
A. Controllable fixed cost.
B. Period cost.
C. Responsibility cost.
D. Committed fixed cost.

49. The concept of contribution margin applies: 
A. Only to investment centers.
B. Only to profit centers.
C. Only to cost centers.
D. To all types of responsibility centers.

50. A responsibility income statement generally does not show the: 
A. Contribution margin of each responsibility center.
B. Traceable fixed costs allocated to each responsibility center.
C. Segment margin of each responsibility center.
D. Net income of each responsibility center.

51. In a responsibility income statement, the term common fixed costs describes fixed costs that: 
A. Occur every month.
B. Jointly benefit several responsibility centers of the business.
C. Occur in virtually every responsibility center of the business (such as salaries).
D. Are easily traceable to specific profit centers.

52. The most common value used for transfer pricing is: 
A. Total variable costs.
B. Total fixed and variable costs.
C. Market value less fixed costs.
D. Market value.