Exam 9: Performance Measurement and Responsibility Accounting
Exam 1: Managerial Accounting Concepts and Principles250 Questions
Exam 2: Job Order Costing and Analysis217 Questions
Exam 3: Process Costing and Analysis230 Questions
Exam 4: Activity Based Costing and Analysis220 Questions
Exam 5: Cost Behavior Cost-Volume-Profit Analysis247 Questions
Exam 6: Variable Costing and Analysis201 Questions
Exam 7: Master Budgets and Performance Planning213 Questions
Exam 8: Flexible Budgets and Standard Costs222 Questions
Exam 9: Performance Measurement and Responsibility Accounting208 Questions
Exam 10: Relevant Costing for Managerial Decisions117 Questions
Exam 11: Capital Budgeting and Investment Analysis159 Questions
Exam 12: Reporting Cash Flows239 Questions
Exam 13: Analysis of Financial Statements233 Questions
Exam 14: Time Value of Money84 Questions
Exam 15: Analyzing for Business Transactions250 Questions
Exam 16: Partnership Accounting179 Questions
Select questions type
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:
(Multiple Choice)
4.9/5
(40)
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Purchasing Maintenance Fabncation Assembly Operating costs \3 2,000 \1 8,000 \9 6,000 \6 2,000 No. of purchase orders 16 4 Sq. ft. of space 3,300 2,700
Required:
Compute the amount of Purchasing department expense to be allocated to Assembly.
(Multiple Choice)
4.9/5
(46)
Departmental contribution to overhead is the same as gross profit generated by that department.
(True/False)
4.9/5
(37)
Advertising expense can be reasonably allocated to departments on the basis of each department's proportion of sales.
(True/False)
4.8/5
(31)
Expenses that are not easily associated with a specific department, and which are incurred for the joint benefit of more than one department, are:
(Multiple Choice)
4.8/5
(37)
Division X makes a part that it sells to customers outside of the company. Data concerning this part appear below:
Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside company for $49 per unit and would substitute the part made by Division X. Division Y requires 5,000 units of the part each period. Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into outside sales. According to the formula in the text, what is the lowest acceptable transfer price from the standpoint of the selling division?

(Multiple Choice)
4.8/5
(37)
Explain the difference between direct and indirect expenses in accounting for departments.
(Essay)
4.9/5
(35)
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
The Black Division occupies 20,000 square feet in the plant. The Navy Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Compute gross profit for the Black and Navy Divisions, respectively.

(Multiple Choice)
4.8/5
(45)
Showing 201 - 208 of 208
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)