ACCT 505 Week 8 Final Exam (Version 2)
1. A good example of a common cost which normally could not be assigned to products on a segmented income statement except on an arbitrary basis would be:
2. Turnover is computed by dividing average operating assets into:
3. A segment of a business responsible for both revenues and expenses would be called:
4. All other things being equal, if a division's traceable fixed expenses increase:
5. In computing the margin in a ROI analysis, which of the following is used?
6. Net operating income is defined as:
7. Suppose a manager is to be measured by residual income. Which of the following will not result in an increase in the residual income figure for this manager, assuming other factors remain constant?
8. During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:
9. Cable Company had the following results for the year just ended:
10. The segment margin ratio in Store J was:
11. Company A's residual income is:
12. Company A's return on investment (ROI) is:
13. If South wants a residual income of $50,000 and the minimum required rate of return is 10%, the annual turnover will have to be:
14. How much is the return on the investment?
15. Consider a decision facing a firm of either accepting or rejecting a special offer for one of its products. A cost that is not relevant is:
16. A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the...