Exam 10: Differential Analysis: the Key to Decision Making

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Iba Industries is a division of a major corporation. The following data are for the latest year of operations: Required: What is the division's residual income?

(Essay)

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Question 101

Wait time is considered non-value-added time.

(True/False)

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Question 102

Net operating income is income after interest and taxes.

(True/False)

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Question 103

Residual income should not be used to evaluate a profit center.

(True/False)

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Question 104

Brandon Inc., has provided the following data for last year's operations: Brandon's return on investment (ROI) is:

(Multiple Choice)

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Question 105

Cabal Products is a division of a major corporation. Last year the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. The company's minimum required rate of return is 14%. The division's return on investment (ROI) is closest to:

(Multiple Choice)

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Question 106

The following data pertain to operations at Quick Incorporated: The wait time for this operation would be:

(Multiple Choice)

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Question 107

Jolin Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

(Multiple Choice)

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Question 108

Throughput Time consists of:

(Multiple Choice)

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Question 109

When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

(True/False)

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Question 110

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: The division's turnover is closest to:

(Multiple Choice)

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Question 111

The following data pertain to operations at Quick Incorporated: The manufacturing cycle efficiency (MCE) for this operation would be:

(Multiple Choice)

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Question 112

Handle Fabrication is a division of a major corporation. Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. The company's minimum required rate of return is 12%. Required: What is the division's return on investment (ROI)?

(Essay)

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Question 113

Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and ROI 18%. Chabot Company's average operating assets were:

(Multiple Choice)

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Question 114

Ricric Corporation has provided the following data for one of its products: The manufacturing cycle efficiency for this operation is closest to:

(Multiple Choice)

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Question 115

Showing 101 - 115 of 115

Iba Industries is a division of a major corporation. The following data are for the latest year of operations: Required: What is the division's residual income?

Wait time is considered non-value-added time.

Net operating income is income after interest and taxes.

Residual income should not be used to evaluate a profit center.

Brandon Inc., has provided the following data for last year's operations: Brandon's return on investment (ROI) is:

Cabal Products is a division of a major corporation. Last year the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. The company's minimum required rate of return is 14%. The division's return on investment (ROI) is closest to:

The following data pertain to operations at Quick Incorporated: The wait time for this operation would be:

Jolin Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Throughput Time consists of:

When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies.

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: The division's turnover is closest to:

The following data pertain to operations at Quick Incorporated: The manufacturing cycle efficiency (MCE) for this operation would be:

Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and ROI 18%. Chabot Company's average operating assets were:

Ricric Corporation has provided the following data for one of its products: The manufacturing cycle efficiency for this operation is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

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