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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Y

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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Y had a direct expense of $1,000 for deliveries and Dept. Z had no direct expense. The indirect expenses are $8,000. The analysis also indicates that 40 % of regular delivery requests originate in Dept. Y and 60% originate in Dept. Z Departmental delivery expenses for Dept Y and Dept Z, respectively, are Multiple Choice $4,500; $4,500. $4,200; $4,800. $5,500; $3,500. $4,800; $4,200. $5,400; $3,600. A challenge in calculating the total costs and expenses of a department is Saved Multiple Choice Determining the gross profit ratio. Assigning direct costs to the department Allocating indirect expenses to the department Determining the amount of sales of the department Determining the direct expenses of the department In a responsibility accounting system Multiple Choice Managers are responsible for their departments' controllable costs. Each accounting report contains all items allocated to a responsibility center Organized and clear lines of authority and responsibility are only incidental. All managers at a given level have equal authority and responsibility Outputs of the departments are not part of the evaluation process

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