Accounting-Need these reworded

Question 1

20 / 20 points

What is the difference between a cost center and a profit center?  Give a complete answer that demonstrates what critical element distinguishes the profit center from the cost center.

A cost center is a sub-unit of a company that is responsible for only its costs. A profit center is a sub-unit of a company that is responsible for revenues, costs, and the resulting profits.

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Question 2

20 / 20 points

Describe the difference between a centralized and a decentralized management style.

In a centralized management structure, one individual/top management makes the decisions and provides direction for the company. In a decentralized management structure, several individuals are responsible for making business decisions and running the business. A decentralized style may have multiple levels with individuals in each level having the autonomy to make business decisions.

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Question 3

20 / 20 points

What is the difference between traceable costs and common costs?

Traceable costs are costs that are specific to a single product/department. Common costs are costs that exist in more than one product/department.

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Question 4

20 / 20 points

What are the four segments of a traditional balanced scorecard?

Answer for blank # 1:	finance	(25 %)
Answer for blank # 2:	customer	(25 %)
Answer for blank # 3:	process	(25 %)
Answer for blank # 4:	learning and growth	(25 %)
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finance, customer, learning and growth, process

Question 5

10 / 10 points

Annapolis Company completes job #601 which has a standard of 510 labor hours at a standard rate of $18.20 per hour.  The job was completed in 640 hours and the average actual labor rate was $19.80 per hour.  What is the labor rate variance?  A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.

Answer:

1,024
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(actual hours X actual rate) - (actual hours x standard rate)

Question 6

10 / 10 points

Annapolis Company completes job #601 which has a standard of 510 labor hours at a standard rate of $19.20 per hour.  The job was completed in 530 hours and the average actual labor rate was $19.20 per hour.  What is the labor efficiency (quantity) variance?  A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.

Answer:

384
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(actual hours x standard rate) - (standard hours x standard rate)