Chat with AIExam 11: How Do Managers Evaluate Performance in Decentralized Organizations
Exam 1: What Is Managerial Accounting76 Questions
Exam 2: How Is Job Costing Used to Track Production Costs45 Questions
Exam 3: How Does an Organization Use Activity-Based Costing to Allocate Overhead Costs71 Questions
Exam 4: How Is Process Costing Used to Track Production Costs59 Questions
Exam 5: How Do Organizations Identify Cost Behavior Patterns69 Questions
Exam 6: How Is Cost-Volume-Profit Analysis Used for Decision Making79 Questions
Exam 7: How Are Relevant Revenues and Costs Used to Make Decisions76 Questions
Exam 8: How Is Capital Budgeting Used to Make Decisions72 Questions
Exam 9: How Are Operating Budgets Created68 Questions
Exam 10: How Do Managers Evaluate Performance Using Cost Variance Analysis69 Questions
Exam 11: How Do Managers Evaluate Performance in Decentralized Organizations63 Questions
Exam 12: How Is the Statement of Cash Flows Prepared and Used66 Questions
Exam 13: How Do Managers Use Financial and Nonfinancial Performance Measures63 Questions
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Exhibit 11-1
Ashville Company has two divisions - Bikes and Trikes.
Ashville Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Bikes Division Trikes Division Sales \ 2,400,000 \ 1,000,000 Cost of goods sold 1,400,000 530,000 Gross margin 1,000,000 470,000 Allocated overhead (from corporate) 270,000 170,000 Selling and administrative expenses 190,000 140,000 Operating income 540,000 160,000 Income tax expense (40\%) Net income \ 324,000 \ 96,000
-Refer to Exhibit 11-1.Assume the Trikes Division has average operating assets totaling $400,000 for the year.What is the division's return on investment?
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(32) An investment center is an organizational segment in which the manager is responsible for costs,revenues,and investment in assets.
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(33) An advantage of return on investment (ROI)as a performance measure is that:
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