Question 1

Using the information below,compute the cash conversion cycle:

Accepted Answer

A) 12 days. 
B) 87 days. 
C) 42 days. 
D) 47 days. 
E) 51 days. 
A) 12 days. 
B) 87 days. 
C) 42 days. 
D) 47 days. 
E) 51 days.

Question 2

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.

Accepted Answer

A) $72,000; $193,000. 
B) $172,000; $352,000. 
C) $100,000; $241,000. 
D) $52,000; $163,000. 
E) $72,000; $163,000. 
A) $72,000; $193,000. 
B) $172,000; $352,000. 
C) $100,000; $241,000. 
D) $52,000; $163,000. 
E) $72,000; $163,000.

Question 3

The investment center return on investment is ________ divided by ________.

Accepted Answer

investments center net income;

Question 4

An example of a controllable cost is equipment depreciation expense.

Accepted Answer

A) True 
 B)False

Question 5

Two investment centers at Marshman Corporation have the following current-year income and asset data:  The return on investment (ROI)for Investment Center B is:

Accepted Answer

A) 371.4% 
B) 26.9% 
C) 24.1% 
D) 39.2% 
E) 21.7% 
A) 371.4% 
B) 26.9% 
C) 24.1% 
D) 39.2% 
E) 21.7%

Question 6

The concepts of direct expenses and uncontrollable costs are essentially the same; also,indirect expenses and controllable costs are essentially the same.

Accepted Answer

A) True 
 B)False

Question 7

Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period:  
 
-The amount of depreciation that should be allocated to Drilling for the current period is:

Accepted Answer

A) $20,000. 
B) $25,000. 
C) $7,500. 
D) $12,500. 
E) $40,000. 
A) $20,000. 
B) $25,000. 
C) $7,500. 
D) $12,500. 
E) $40,000.

Question 8

Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period:  
 
-The amount of the advertising cost that should be allocated to Drilling for the current period is:

Accepted Answer

A) $16,250. 
B) $45,000. 
C) $23,750. 
D) $325,000. 
E) $54,250. 
A) $16,250. 
B) $45,000. 
C) $23,750. 
D) $325,000. 
E) $54,250.

Question 9

Ultimo Co.operates three production departments as profit centers.The following information is available for its most recent year.Which department has the greatest departmental contribution to overhead (in dollars)and what is the amount contributed?

Accepted Answer

A) Dept.3; $400,000. 
B) Dept.1; $1,000,000. 
C) Dept.2; $100,000. 
D) Dept.3; $250,000. 
E) Dept.2; $150,000. 
A) Dept.3; $400,000. 
B) Dept.1; $1,000,000. 
C) Dept.2; $100,000. 
D) Dept.3; $250,000. 
E) Dept.2; $150,000.

Question 10

What is the purpose of a responsibility accounting system?

Accepted Answer

A responsibility accounting sy

Question 11

Chancellor Company is divided into four departments.Departments A and B are service departments and Departments 1 and 2 are operating (production)departments.The services of the two service departments are used by the other departments as follows:
 
Complete the following table:

Accepted Answer

The answer of Chancellor Company is divided into four departments.Departments...

Question 12

Pepper Department store allocates its service department expenses to its various operating (sales)departments.The following data is available for its service departments:  The following information is available for its three operating (sales)departments:
  
-What is the total expense allocated to Department B?

Accepted Answer

A) $29,375. 
B) $30,462. 
C) $30,500. 
D) $30,775. 
E) $32,160. 
A) $29,375. 
B) $30,462. 
C) $30,500. 
D) $30,775. 
E) $32,160.

Question 13

A profit center generates revenue,incurs costs,and has the authority to make significant investing decisions.

Accepted Answer

A) True 
 B)False

Question 14

In a firm that manufactures clothing,the department that is responsible for actually assembling the garments could best be described as a(n):

Accepted Answer

A) Service department. 
B) Operating or production department. 
C) Cost center. 
D) Department in which all of the costs incurred are direct expenses. 
E) Department in which all of the costs incurred are indirect expenses. 
A) Service department. 
B) Operating or production department. 
C) Cost center. 
D) Department in which all of the costs incurred are direct expenses. 
E) Department in which all of the costs incurred are indirect expenses.

Question 15

A challenge in calculating the total costs and expenses of a department is:

Accepted Answer

A) Determining the gross profit ratio. 
B) Assigning direct costs to the department. 
C) Allocating indirect expenses to the department. 
D) Determining the amount of sales of the department. 
E) Determining the direct expenses of the department. 
A) Determining the gross profit ratio. 
B) Assigning direct costs to the department. 
C) Allocating indirect expenses to the department. 
D) Determining the amount of sales of the department. 
E) Determining the direct expenses of the department.

Question 16

Direct expenses are incurred for the joint benefit of more than one department; they cannot be readily traced to only one department.

Accepted Answer

A) True 
 B)False

Question 17

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.What is the lowest transfer price Division X will accept?

Accepted Answer

A) $50 
B) $49 
C) $46 
D) $30 
E) $20 
A) $50 
B) $49 
C) $46 
D) $30 
E) $20

Question 18

Pepper Department store allocates its service department expenses to its various operating (sales)departments.The following data is available for its service departments:  The following information is available for its three operating (sales)departments:
  
-What is the total advertising expense allocated to Department B?

Accepted Answer

A) $30,000. 
B) $ 9,000. 
C) $12,500. 
D) $10,800. 
E) $7,500. 
A) $30,000. 
B) $ 9,000. 
C) $12,500. 
D) $10,800. 
E) $7,500.

Question 19

Measures used to evaluate the manager of an investment center include investment turnover and profit margin.

Accepted Answer

A) True 
 B)False

Question 20

A retail store has three departments,A,B,and C,each of which has four full-time employees.The store does general advertising that benefits all departments.Advertising expense totaled $90,000 for the current year,and departmental sales were:
Department A……………… $308,000
Department B……………… 644,000
Department C……………… 448,000
Total sales………………….$1,400,000
Calculate the amount of advertising expense that should be allocated to each department?

Accepted Answer

Percentage of total sales:
Dep

Using the information below,compute the cash conversion cycle:

The investment center return on investment is divided by .

An example of a controllable cost is equipment depreciation expense.

Two investment centers at Marshman Corporation have the following current-year income and asset data: The return on investment (ROI)for Investment Center B is:

The concepts of direct expenses and uncontrollable costs are essentially the same; also,indirect expenses and controllable costs are essentially the same.

Ultimo Co.operates three production departments as profit centers.The following information is available for its most recent year.Which department has the greatest departmental contribution to overhead (in dollars)and what is the amount contributed?

What is the purpose of a responsibility accounting system?

Chancellor Company is divided into four departments.Departments A and B are service departments and Departments 1 and 2 are operating (production)departments.The services of the two service departments are used by the other departments as follows: Complete the following table:

A profit center generates revenue,incurs costs,and has the authority to make significant investing decisions.

In a firm that manufactures clothing,the department that is responsible for actually assembling the garments could best be described as a(n):

A challenge in calculating the total costs and expenses of a department is:

Direct expenses are incurred for the joint benefit of more than one department; they cannot be readily traced to only one department.

Measures used to evaluate the manager of an investment center include investment turnover and profit margin.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters

Exam 22: Performance Measurement and Responsibility Accounting

Using the information below,compute the cash conversion cycle:

The investment center return on investment is ________ divided by ________.

An example of a controllable cost is equipment depreciation expense.

Two investment centers at Marshman Corporation have the following current-year income and asset data: The return on investment (ROI)for Investment Center B is:

The concepts of direct expenses and uncontrollable costs are essentially the same; also,indirect expenses and controllable costs are essentially the same.

Ultimo Co.operates three production departments as profit centers.The following information is available for its most recent year.Which department has the greatest departmental contribution to overhead (in dollars)and what is the amount contributed?

What is the purpose of a responsibility accounting system?

Chancellor Company is divided into four departments.Departments A and B are service departments and Departments 1 and 2 are operating (production)departments.The services of the two service departments are used by the other departments as follows: Complete the following table:

A profit center generates revenue,incurs costs,and has the authority to make significant investing decisions.

In a firm that manufactures clothing,the department that is responsible for actually assembling the garments could best be described as a(n):

A challenge in calculating the total costs and expenses of a department is:

Direct expenses are incurred for the joint benefit of more than one department; they cannot be readily traced to only one department.

Measures used to evaluate the manager of an investment center include investment turnover and profit margin.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

Filters

The investment center return on investment is divided by .