allocation basis that could be used to distribute it to the departments indicated.

Computer service expenses of production scheduling for operating departments.

General office department expenses of the operating departments.

Maintenance department expenses of the operating departments.

Electric utility expenses of all departments.

In each blank next to the following terms, place the identifying letter of its best description:

Cost center

A$.$ Engages directly in manufacturing or in making sales

Investment center

Departmental accounting system directly to customers.

Operating department

B$.$ Does not directly

manufacture products but

Profit center contributes to profitability of the entire company.

Responsibility accounting system

C$.$ Incurs costs and also generates revenues.

Service department

D$.$ Provides information used to evaluate the performance of a department.

E$.$ Incurs costs without directly yeilding revenues.

F$.$ Provides information used to evaluate the performance of a department manager.

G$.$ Holds manager responsible for revenues, costs, and investments.