Question 1

Which is the best example of a decentralized operation?

Accepted Answer

A) one owner who prepares plans and makes decisions for the entire company 
B) each unit is responsible for their own operations and decision making 
C) in a major company, operating decisions are made by top management 
D) none of these, all are examples of a centralized operation 
A) one owner who prepares plans and makes decisions for the entire company 
B) each unit is responsible for their own operations and decision making 
C) in a major company, operating decisions are made by top management 
D) none of these, all are examples of a centralized operation B

Question 2

The residual income for Mason is

Accepted Answer

A) $0 
B) $84,150 
C) $6,000 
D) $1,500 
A) $0 
B) $84,150 
C) $6,000 
D) $1,500 D

Question 3

Using the data below for the Coffee & Cocoa Company,
a determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions.
b determine the increase or decrease in net income if C Region did not operate.

Accepted Answer

b $10,000 decrease

Question 4

Sales commission expense for a department store is an example of a direct expense.

Accepted Answer

A) True 
 B)False

Question 5

Using the data from the Terrace Industries, determine the divisional income from operations for Districts 1 & 2.
   Allocate service department expenses proportional to the sales of each district.

Accepted Answer

Percent of sales allocation:
District 1

Question 6

What is Clydesdale Company's rate of return on investment?

Accepted Answer

A) 56% 
B) 20% 
C) 45% 
D) 25% 
A) 56% 
B) 20% 
C) 45% 
D) 25%

Question 7

The ratio of income from operations to sales is termed the profit margin component of the rate of return on investment.

Accepted Answer

A) True 
 B)False

Question 8

The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000.The minimum acceptable rate of return on assets is 12%.What is the residual income for the division?

Accepted Answer

The answer of The Magnolia Company's Division A has income...

Question 9

A department store apportions payroll costs on the basis of the number of payroll checks issued.Accounting costs are apportioned on the basis of the number of reports.The payroll costs for the year were $231,000, and the accounting costs for the year totaled $75,500.The departments and the number of payroll checks and accounting reports for each are as follows:
   Determine the amount of a payroll cost and b accounting cost to be apportioned to each department.

Accepted Answer

@#IMG-DLM& ACCREDITING STANDARDS: ACCT.A

Question 10

Which of the following would be most effective in a small owner/manager-operated business?

Accepted Answer

A) profit centers 
B) centralization 
C) investment centers 
D) cost centers 
A) profit centers 
B) centralization 
C) investment centers 
D) cost centers

Question 11

How much will Jefferson's total income from operations increase?

Accepted Answer

A) $37,500 
B) $100,000 
C) $62,500 
D) $150,000 
A) $37,500 
B) $100,000 
C) $62,500 
D) $150,000

Question 12

The excess of divisional income from operations over a minimum acceptable amount of divisional income from operations is

Accepted Answer

A) profit margin 
B) residual income 
C) rate of return on investment 
D) gross profit 
A) profit margin 
B) residual income 
C) rate of return on investment 
D) gross profit

Question 13

The income from operations for the Rails Division is

Accepted Answer

A) $60,800 
B) $33,600 
C) $8,700 
D) $21,150 
A) $60,800 
B) $33,600 
C) $8,700 
D) $21,150

Question 14

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

Accepted Answer

A) cost price approach 
B) negotiated price approach 
C) revenue price approach 
D) market price approach 
A) cost price approach 
B) negotiated price approach 
C) revenue price approach 
D) market price approach

Question 15

The profit center income statement should include only revenues and expenses that are controlled by the manager.

Accepted Answer

A) True 
 B)False

Question 16

Assume that Division Blue has achieved a yearly income from operations of $110,000 using $900,000 of invested assets.If management has set a minimum acceptable rate of return of 11%, the residual income is

Accepted Answer

A) $99,000 
B) $691,000 
C) $209,000 
D) $11,000 
A) $99,000 
B) $691,000 
C) $209,000 
D) $11,000

Question 17

The profit margin for Division C is 6% and the investment turnover is 1.2.What is the rate of return on investment for Division B?

Accepted Answer

A) 20% 
B) 6.7% 
C) 7.3% 
D) 7.2% 
A) 20% 
B) 6.7% 
C) 7.3% 
D) 7.2%

Question 18

The rates at which centralized services are charged to each division are called service department charge rates.

Accepted Answer

A) True 
 B)False

Question 19

What will the income of the Micro Division be after all service department allocations?

Accepted Answer

A) $305,000 
B) $650,000 
C) $345,000 
D) $610,000 
A) $305,000 
B) $650,000 
C) $345,000 
D) $610,000

Question 20

The DuPont formula uses financial information to measure the performance of a business.

Accepted Answer

A) True 
 B)False

Which is the best example of a decentralized operation?

The residual income for Mason is

Using the data below for the Coffee & Cocoa Company, a determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions. b determine the increase or decrease in net income if C Region did not operate.

Sales commission expense for a department store is an example of a direct expense.

Using the data from the Terrace Industries, determine the divisional income from operations for Districts 1 & 2. Allocate service department expenses proportional to the sales of each district.

What is Clydesdale Company's rate of return on investment?

The ratio of income from operations to sales is termed the profit margin component of the rate of return on investment.

The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000.The minimum acceptable rate of return on assets is 12%.What is the residual income for the division?

Which of the following would be most effective in a small owner/manager-operated business?

How much will Jefferson's total income from operations increase?

The excess of divisional income from operations over a minimum acceptable amount of divisional income from operations is

The income from operations for the Rails Division is

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

The profit center income statement should include only revenues and expenses that are controlled by the manager.

Assume that Division Blue has achieved a yearly income from operations of $110,000 using $900,000 of invested assets.If management has set a minimum acceptable rate of return of 11%, the residual income is

The profit margin for Division C is 6% and the investment turnover is 1.2.What is the rate of return on investment for Division B?

The rates at which centralized services are charged to each division are called service department charge rates.

What will the income of the Micro Division be after all service department allocations?

The DuPont formula uses financial information to measure the performance of a business.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 8: Performance Evaluation for Decentralized Operations

Which is the best example of a decentralized operation?

The residual income for Mason is

Using the data below for the Coffee & Cocoa Company, a determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions. b determine the increase or decrease in net income if C Region did not operate.

Sales commission expense for a department store is an example of a direct expense.

Using the data from the Terrace Industries, determine the divisional income from operations for Districts 1 & 2. Allocate service department expenses proportional to the sales of each district.

What is Clydesdale Company's rate of return on investment?

The ratio of income from operations to sales is termed the profit margin component of the rate of return on investment.

The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000.The minimum acceptable rate of return on assets is 12%.What is the residual income for the division?

Which of the following would be most effective in a small owner/manager-operated business?

How much will Jefferson's total income from operations increase?

The excess of divisional income from operations over a minimum acceptable amount of divisional income from operations is

The income from operations for the Rails Division is

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

The profit center income statement should include only revenues and expenses that are controlled by the manager.

Assume that Division Blue has achieved a yearly income from operations of $110,000 using $900,000 of invested assets.If management has set a minimum acceptable rate of return of 11%, the residual income is

The profit margin for Division C is 6% and the investment turnover is 1.2.What is the rate of return on investment for Division B?

The rates at which centralized services are charged to each division are called service department charge rates.

What will the income of the Micro Division be after all service department allocations?

The DuPont formula uses financial information to measure the performance of a business.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters