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charter oak acc102 week 9 test part 1




Question;?;1. Which;of the following is not a valid reason for developing responsibility center;information?;Answer;?;Question 2;5 out of 5;points;2. In evaluating the long-run contribution of a;particular profit center to the overall profitability of the company;management should be most interested in the center?s;Answer;?;Question 3;5 out of 5;points;3. Fixed costs of a department that a manager;can't change are called;Answer;?;Question 4;5 out of 5;points;4. Kenny's Deli is organized as an investment;center with the following information available, what is the responsibility;margin of the deli during the year?;Sales - $220,000;Variable Expenses - $100,000;Traceable fixed costs - $56,000;Average total assets - $95,000;Answer;?;Question 5;5 out of 5;points;5. One of the unique;services provided by San;Francisco's St. Francis Hotel is cleaning and polishing;coins (pocket change) for the guests. From;the standpoint of hotel management, this "money laundry" should be;viewed as;Answer;?;Question 6;5 out of 5;points;6. The primary difference between a cost center;and profit center is that;Answer;?;Question 7;5 out of 5;points;7. The bookstore or a University would be;classified as;Answer;?;Question 8;5 out of 5;points;8) The most common value used for transfer;pricing is;Answer;?;Question 9;5 out of 5;points;9. Which of the following is NOT true about;responsibility centers?;Answer;?;Question 10;5 out of 5;points;10. Which of the following is NOT one of the;basic steps in the operation of a responsibility accounting system?;Answer;?;Question 11;5 out of 5;points;11) Many companies view performance margin as a;more useful tool than responsibility margin for evaluating segment managers.;This is because;Answer;?;Question 12;5 out of 5;points;12. If a company wanted to evaluate the manager's;ability to control costs, the company would probably look at the;Answer;?;Question 13;5 out of 5;points;13. Responsibility margin is equal to;Answer;?;Question 14;5 out of 5;points;14. In preparing a responsibility income;statement that shows contribution margin and responsibility margin, two;concepts are involved in allocating costs to the various centers. These;concepts are;Answer;?;Question 15;5 out of 5;points;Use the following to answer question 15. You can;also reference page963 Exhibit 22-4 in the text book;Entire Company Division 1 Division 2;Sales $575,000 $400,000 $175,000;Variable 247,500 (1) (2);-------- -------- --------;CM $327,500 $ $;Fixed 110,000 (3) (4);------- -------- ---------;RM $217,500 (5) (6);11. Variable costs are (1) 40% of sales and (2) 50% of sales. Fixed;costs traceable to divisions: (3) $40,000, and (4) $70,000. What is the;division responsibility margin for the Division 2 (6)?;Answer


Paper#42628 | Written in 18-Jul-2015

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