The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the

The Telemarketing Department of a residential remodeling company would most likely be evaluated as a

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ASSIGNMENT #6 EDITED

The cost is not charged to the departments because it is neither easily traceable to the departments nor controllable by the departments

The Telemarketing Department of a residential remodeling company would most likely be evaluated as a:

a. contribution center.

b. cost center.

c. revenue center.

d. profit center.

e. investment center.
Question text

The Fitzhugh Division of General Enterprises has a negative residual income of $540,000. Fitzhugh's management is contemplating an investment opportunity that will reduce this negative amount to $400,000. The investment:

a. should be pursued because it is attractive from both the divisional and corporate perspectives.

b. should not be pursued because it is unattractive from the divisional perspective although it is attractive from the corporate perspective.

c. should be pursued because it is attractive from the divisional perspective although not from the corporate perspective.

d. should be pursued because it is attractive from the corporate perspective although not from the divisional perspective.

e. should not be pursued because it is unattractive from both the divisional and corporate perspectives.

Question text

Harris Company is preparing a segmented income statement, subdivided into departments (billing, purchasing, and telemarketing). Which of the following choices correctly describes the accounting treatment of the firm's compensation cost for key executives (president and vice-presidents)?

a. The cost is not charged to the departments because, although easily traceable to the departments, it is not controllable at the departmental level.

b. The cost is not charged to the departments because it is both easily traceable to the departments and controllable by the departments.

c. The cost is not charged to the departments because it is neither easily traceable to the departments nor controllable by the departments.

d. The cost is not charged to the departments because, although controllable at the departmental level, it is not easily traceable to the departments.

e. The cost is charged to the departments.
Question text

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