1. Departmental accounting and responsibility accountin

1. Departmental accounting and responsibility accounting are closely related. A. B. 2. Indirect expenses are easily traced to a specific department because they are incurred for the sole benefit of that department. 3. A support service department is usually evaluated as a profit center. 4. A cost center does not directly generate revenues. 5. In the allocation process used for overhead the cost driver selected probably has the greatest significance. 6. A cost center is a unit of a business that incurs costs but does not directly generate Accounting department. revenues. Of the following which would not be considered a cost center? Purchasing department. C. Patient Financial Services department. D. Advertising department. E. All of these would be considered cost centers. 7. A two-stage allocation process involves identification of: service departments and cost centers. non-product departments and cost centers. service departments and revenue centers. service departments and indirect costs. cost centers and direct costs.
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