Which of the following would not be considered a service department in a hospital?
a. Human Resources.
b. Security.
c. Patient Records.
d. Accounting.
e. Cardiac Care. Question text
Given that ROI measures performance over a period of time, invested capital would most appropriately be figured by using:
c. average total assets minus average current liabilities.
d. average total assets minus average total liabilities.
e. average total liabilities minus average current assets.
Question text
Which of the following is more characteristic of a decentralized than a centralized business structure?
a. The firm grows very quickly.
b. There is little confidence in lower-level management to make decisions.
d. considers direct material and direct labor but not manufacturing overhead.
Question text
A rational and systematic allocation base for service department costs should reflect the cost accountant's consideration of all of the following except
a. the ability of revenue-producing departments to bear the allocated costs.
b. the benefits received by the revenue-producing department from the service department.
c. all of the above are considerations.
d. a causal relationship between factors in the revenue-producing department and costs incurred in the service department.
Question text
The allocation of general overhead control costs to operating departments can be least justified in determining
