Which of the following statements is FALSE? O The Accounting Department at the S

Question

Which of the following statements is FALSE? O The Accounting Department at the Scranton Branch of Dunder Mifflin is most likely treated as a Cost Center O The Warehouse at Dunder Mifflin is most likely treated as a Cost Center O The Sales Department at the Scranton branch of Dunder Mifflin is most likely treated as a Revenue Center O Michael Scott, Manager of the Scranton branch of Dunder Mifflin, is most likely evaluated as head of an Investment Center Question 15 1 pts The performance evaluation of a cost center is typically based on its ROI O sales volume variance Not enough information is provided to answer this question. O flexible budget variance for direct materials and direct labor Question 16 1 pts Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs $10,000; variable selling and administrative costs, $5 per unit, total fixed selling and administrative costs, $7,500. There are no beginning inventories. What is the unit PRODUCT cost using absorption costing (used for regular financial reporting)? O $70 per unit $55 per unit O $90 per unit O $50 per unit

Explanation / Answer

1)Correct option is "C"

sales department of a branch is mainly treated as revenue center (as sales revenue is taken in to account)

2)correct option is "D"

Flexible budget shows the difference between actual results and standard cost for actual output which is used for performance evaluation .

3)correct option is "A" -70

product cost under absorption costing =direct material +labor +variable overhead+ fixed overhead

       = 10+25+15+(10000/500)

         = 70

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