Exam 17: Responsibility Accounting, Performance Evaluation and Transfer Pricing
Exam 1: The Role of Accounting Information in Management Decision Making81 Questions
Exam 2: Cost Concepts, Behaviour and Estimation88 Questions
Exam 3: A Costing Framework and Cost Allocation45 Questions
Exam 4: Cost-Volume-Profit Cvp Analysis93 Questions
Exam 5: Job Costing Systems45 Questions
Exam 6: Process Costing Systems93 Questions
Exam 7: Absorption, Variable and Throughput Costing102 Questions
Exam 8: Activity Analysis: Costing and Management96 Questions
Exam 9: Relevant Costs for Decision Making122 Questions
Exam 10: Standard Costs, Flexible Budgets and Variance Analysis104 Questions
Exam 11: Operational Budgets87 Questions
Exam 12: Strategy and Control35 Questions
Exam 13: Planning and Budgeting for Strategic Success45 Questions
Exam 14: Capital Budgeting and Strategic Investment Decisions93 Questions
Exam 15: The Strategic Management of Costs and Revenues109 Questions
Exam 16: Strategic Management Control: a Lean Perspective46 Questions
Exam 17: Responsibility Accounting, Performance Evaluation and Transfer Pricing63 Questions
Exam 18: The Balanced Scorecard and Strategy Maps83 Questions
Exam 19: Rewards, Incentives and Risk Management45 Questions
Exam 20: Sustainability Management Accounting45 Questions
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A segment with an ROI of 30% has a profit of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is
Free
(Multiple Choice)
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Correct Answer:
D
Division A produces a component for Honda Ltd's main product - motor vehicles. The division operates as a profit centre. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A:
The price range within which A would sell components to the Assembly Division is

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(Multiple Choice)
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Correct Answer:
B
Return on investment can be decomposed into two ratios: investment turnover and return on sales.
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(True/False)
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Correct Answer:
True
THN Pty Ltd reported operating profit of $30,000, revenue of $50,000, and average operating assets of $40,000 for a recent year. Which of the following is true?
(Multiple Choice)
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Which of the following best describes "general knowledge" in a decision-making context?
(Multiple Choice)
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Economic value added can be measured so that it reduces most of the problems that arise under residual income.
(True/False)
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Which of the following transfer pricing systems potentially takes the most time to establish?
(Multiple Choice)
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Responsibility accounting is the process of using financial information to justify pay increases and promotions for managers.
(True/False)
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Division A produces a component for Honda Ltd's main product - motor vehicles. The division operates as a profit centre. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A:
The minimum price at which A would sell components internally is

(Multiple Choice)
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Which type of knowledge is most costly to transfer within an organisation?
(Multiple Choice)
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In a profit centre, managers' primary goal is to maximise revenues.
(True/False)
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If a supplying division has excess capacity, the best transfer price is the product's variable cost.
(True/False)
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Which of the following is an advantage of cost-based transfer prices? 

(Multiple Choice)
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Choices about decision-making authority and about organisational structure are often related.
(True/False)
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Dual-rate transfer pricing systems are appropriate when the
(Multiple Choice)
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Decision-making based on general knowledge is more likely to occur in this type of organisation
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