Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes the type of information that is most useful for managers in an expense center?

Sales revenue figures for each product line

Market share analysis

Return on investment (ROI) calculations

Detailed reports on actual expenses compared to budgeted expenses

Previous problemNext problem

Verified step by step guidance

Understand the concept of an expense center: An expense center is a division or department within an organization where the primary focus is on controlling costs rather than generating revenue. Managers in an expense center are responsible for monitoring and managing expenses to ensure they align with the budget.

Identify the type of information relevant to an expense center: Since the focus is on managing costs, the most useful information for managers would be detailed reports that compare actual expenses incurred to the budgeted expenses. This allows managers to identify variances and take corrective actions if necessary.

Eliminate irrelevant options: Sales revenue figures, market share analysis, and return on investment (ROI) calculations are not directly related to the primary function of an expense center. These metrics are more relevant to profit centers or investment centers where revenue generation and profitability are the focus.

Focus on the correct option: Detailed reports on actual expenses compared to budgeted expenses provide actionable insights for managers in an expense center. These reports help in tracking performance, identifying areas of overspending, and ensuring adherence to financial plans.

Conclude the reasoning: Managers in an expense center benefit most from information that helps them control and manage costs effectively. Therefore, the correct answer is 'Detailed reports on actual expenses compared to budgeted expenses.'