Complete question:
Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?
A) The maintenance department.
B) Product no. 675.
C) Compton Corporation.
D) The Midwest division.
E) The telemarketing center.
Answer:
Compton Corporation is definitely not a cost object in this situation
Explanation:
A cost object is a concept commonly used in financial reporting to describe the costs. Definitions commonly found in expense items include: product lines, geographical areas, clients, teams or anything else handling the costs.
Any object to which costs are independently calculated is a cost entity. In an organization, an expense item can be, for example a team, workmanship, production line or procedure.
For example, the costs of construction, customer support or revamping of a returned product may be tracked.
Answer:
Option D. The lender is concerned with the loan applicant's need of financial assistance.
Explanation:
The reason is that the lender wants to know where the money the borrower will spend in order to have surety that the money will invested somewhere which will generate value above the amount of interest the person owes to the bank. If a person wants a loan of $500 from you because he wants to use that money in gambling then I am 100% sure if you are a wise person then you will not lend your friend $500. Bank is interested in following questions:
What is your credit number?
What is your Income?
For what purpose you require a loan?
Answer: D. Companies can scan the codes to quickly enter data whenever products are received, moved, or shipped.
