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Andreyy89
3 years ago
13

Practice Question 25 Which one of the following is an effective method of evaluating a cost center? Compare actual total costs w

ith flexible budget data. Compare actual controllable costs with static budget data. Compare actual controllable costs with flexible budget data. Compare the actual profit generated with expected profit.
Business
2 answers:
Bogdan [553]3 years ago
8 0
Yo that’s crazy keep working
Afina-wow [57]3 years ago
6 0

Answer:

C). Compare actual controllable costs with flexible budget data.

Explanation:

The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.

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An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital .

Option D

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Consider 2 companies, each selling athleticware and each with a focused differentiation strategy. It is NOT possible for both of
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3 years ago
On October 1, Vaughn's Carpet Service borrows $349000 from First National Bank on a 4-month, $349000, 9% note. What entry must V
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Answer:

Dr Notes Payable 349,000

Dr Interest Payable 10,470

Cr Cash 359,470

Explanation:

Preparation of Vaughn's Carpet Service Journal entry

Since we were told that Vaughn's Carpet Service borrows the amount of $349,000 on 1st October from First National Bank based on a 4-month, $349,000, 9% note the transaction will be recorded as :

Dr Notes Payable 349,000

Dr Interest Payable 10,470

Cr Cash 359,470

$349,000 +($349,000 *.09* 4/12)

=$349,000+10,470

=$359,,470

3 0
3 years ago
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